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£3,700 Boost to First time buyers

June 20, 2016

Removal VanThere’s a whole legion of wannabe Erdington first-time buyers keen to get on the property ladder and they now have a 3% price advantage over the previously quicker responding army of Erdington landlords with cash at the ready. Since the start of April, buy to let landlords have had to pay an additional 3% stamp duty so whilst demand from some Erdington buy to let landlords has dropped away, in the interim, it offers Erdington first time buyers (FTB’s) a chance to fill the vacuum with less competition from cash rich landlords (over two thirds of BTL properties were purchased without a mortgage in the last 7 years) who could bid more and complete quicker.

Looking at the average value of a terraced house in Erdington currently standing at £126,300, that means if our Erdington FTB went up against a Erdington landlord, the landlord would have to pay an additional £3,789 in stamp duty. Early anecdotal evidence from fellow property professionals in the suburb is suggesting landlords are reducing their offers slightly on Erdington properties to reflect the extra stamp duty.

Whilst on the face of it, it appears landlords are being punished by No.11 Downing Street, I actually believe this increase in stamp duty for landlords is a good thing for the Erdington property market as a whole.

Since 2011/12, the Erdington property market has performed very well indeed. Over the last 12 months, £103,270,053 has been spent buying 771 Erdington properties. Figures from the Land Registry have just been released and month on month in our council area, property values are 0.1% lower, yet 6.4% higher year on year. These figures are nowhere near the heady days of 2003 (April to be exact), when Erdington property prices rose by 28.5% in 12 months.

So as property values in Erdington (and the UK as whole) start to stabalise and come back to some kind of balance, I am beginning to see savvy landlords view the Erdington property market in a different light. Even with the Spring rush, gone are the days where you could make limitless money on anything that had a door, a few windows and roof. This stamp duty change has made more and more landlords, after reading the Erdington Property Market Blog take advice on what or not to buy and what to pay, meaning Erdington landlords are being more calculated with their Erdington BTL purchases. I am also seeing a variance between relatively brisk current price momentum and softer expectations in terms of property value growth in Erdington, this in part reflects amplified uncertainty about the short term economic outlook (eg Brexit, Issues in the Far East etc).

Now I know a lot of Erdington landlords brought forward their BTL purchases to beat the stamp duty deadline. However, it is probable that hunger from Erdington investors will return for the right Erdington property later in the year, especially if it’s at the right price and offers a decent yield. However, in the meantime, Erdington FTB’s could and should, in the short term, make hay whilst the sun shines plug the gap and grab a bargain!

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Very rude and have a habit of not replying. Have seen personal info of clients too. Very unprofessional and ill-mannered. How they received an award is beyond me.
Very bad customer service.
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