12 Apr

UK property investment falls

UK property investment falls

Property investment in the UK has fallen significantly since the introduction of the additional three per cent stamp duty tax.

Figures from conveyancing services My Home Move show the number of investment properties being bought has fallen by 50 per cent since April last year.

Doug Crawford, My Home Move’s chief executive officer, explained the three per cent charge was introduced to prevent investor landlords purchasing homes that could appeal to first-time buyers. However, he added that it has impacted on a whole range of buyers, such as parents buying property for their children.

As a result, there has been a growth in gifted deposits since the stamp duty changes were announced.

“If anything, the changes have resulted in money being redirected into gifted deposits, particularly for second steppers and middle movers.

“It would appear from the data, that while investors were choosing to back off on buying additional properties, the number of gifted deposits was rising at a rate of around one per cent, the equivalent of an additional 3,000 properties bought using a gifted deposit in the six months after the stamp duty change.

“I suspect it is parents, those who ordinarily would have bought a second home, who have redirected their savings towards their children to help them onto, and up, the property ladder.”ADNFCR-1222-ID-801834768-ADNFCR

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