PropertyInvesting.net: property investment ideas, advice, insights, trends
Propertyinvesting.net: Property Investment ideas, advice, insights, trends

PropertyInvesting.net: Property Investment News

 Property News

more news articles...

Stamp duty hike spurs buy-to-let spree from investors


03-07-2016

 

HOUSE prices are being pushed even higher by buy-to-let investors rushing to beat the upcoming stamp duty hike in April, new data due this week from surveyors will show.

A man looking at an estate agent window

GETTY

Buy-to-let investors rushing to beat the stamp duty hike are pushing house prices even higher

The Royal Institution of Chartered Surveyors (RICS) is expected to say on Thursday that the surge in demand intensified last month.

It has been rising since November, when Chancellor George Osborne announced that duty on buy-to-lets will be raised by three percentage points in a bid to curb the booming sector.

The RICS will say 51 per cent of surveyors reported price hikes last month, compared with 49 per cent in January.

Investec economist Chris Hare said: “It was not difficult to see house price strength continuing into February, particularly as buy-to-let investors rush to buy before the new stamp duty surcharge comes into effect in April."

Bank buildings in Canary Wharf

GETTY

There has been a 45 per cent increase in traders betting on bank shares rising

Buy-to-let investors rush to buy before the new stamp duty surcharge

Chris Hare

Elsewhere, yesterday marked the seventh anniversary of ultra-low interest rates.

The Bank of England’s Monetary Policy Committee cut the base rate from 1 per cent to 0.5 per cent on March 5, 2009, as part of its response to the credit crunch-induced recession.

Last month Bank of England governor Mark Carney warned that rates could be cut further due to fears about a global economic slowdown.

Those fears culminated in the stock market crash at the start of the year. Bank shares in particular were hit, as fears about a new banking crisis grew.

Inside the London Stock Exchange building

GETTY

The FTSE 100 nearly recouped its losses for the year

However the past four weeks have seen markets rally and the FTSE 100 closed on Friday at 6,199.43, nearly recouping its losses for the year.

Bank shares have rallied and traders are increasingly positive about the sector.

According to data from social trading platform eToro, there has been a 45 per cent increase in traders betting on bank shares rising, with Lloyds Banking Group a particular attraction.

Yoni Assia, chief executive of eToro, said: “Our data shows a reverse in sentiment on banking stocks with traders on eToro moving from a sell to buy position in anticipation of a rise.”

www.express.co.uk

back to top

Site Map | Privacy Policy | Terms & Conditions | Contact Us | ©2018 PropertyInvesting.net