Some 60% of multi-property landlords have expanded their property portfolio since the introduction of the stamp duty holiday in July 2020, according to research from Direct Line for Business.
The report shows landlords have been strategic with their purchases; 43% have invested in properties outside major cities, with 82% doing so because they anticipated renters moving out of cities due to the Covid-19 pandemic and an upsurge in remote working.
Half of landlords feel the stamp duty holiday has kept the property market afloat during the pandemic, while 43% say that it has encouraged them to accelerate plans to purchase properties.
Jamie Chaplin, landlord business manager at Direct Line, comments: “It’s been encouraging to see the property market so buoyant since the stamp duty holiday was introduced. And it’s been interesting to see more landlords invest in rural properties, suggesting they’re responding to the rise of flexible working and the possibility of people leaving major cities to work remotely.”
While the Chancellor is expected to extend the stamp duty holiday for three months in this week’s Budget, 45% of landlords fear that the eventual end of the holiday could heavily impact the market and the value of their portfolios. This is prompting many to take desperate measures to try to get their purchases over the line as soon as possible.