'Win-win' situation for residential landlords

News Category: Industry News

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Residential landlords find themselves in a "win-win situation" following the introduction of new stamp duty rules last week, one analyst has claimed.

The government last week increased the number of properties on which buyers will be exempt from paying stamp duty, by raising the waiver's maximum value from £125,000 to £175,000.

However, while first time buyers were targeted as the main beneficiaries the 12 month exemption, landlords also stand to benefit.

Melanie Bien, director at Savills Private Finance, explained her "surprise" that properties bought for residential lettings were to be included in the waiver.

She told the Financial Times: "I think many landlords did not expect for a moment that it would apply to them.

"This will definitely open up the lower end of the market for buy-to-let investors."

This could also provide a boost to the buy-to-let market, which has seen a dip in the number of approvals for mortgages during the first half of the year, according to figures from the Council of Mortgage Lenders.

Data reveals that the number of buy-to-let loans approved fell to 144,600 in the first half of 2008, down from 169,500 in the first half of 2007.

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