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Buy-to-let landlords didn’t take advantage of the stamp duty holiday to buy more

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Britain’s landlords did not embrace the stamp duty holiday with the same fervour as owner occupiers, new research suggests. 

Buy-to-let investors completed tens of thousands fewer transactions than they did during a similar 15-month period in 2016, despite rents heading higher in much of Britain during the pandemic. 

The share of properties bought by landlords in the run-up to the tax holiday, which started in July 2020, was 11 per cent – and only rose to 12 per cent during it, according to estate agent Hamptons International.

The stamp duty holiday failed to leabeing in to take advantage of rising rents

The stamp duty holiday failed to lead to a buy-to-let boom, despite landlords being eligible for the tax saving of up to £15,000 and having the chance to take advantage of rising rents

This was despite rents rising at their fastest pace for more than a decade in the year to July. 

There were a total of 215,000 investor purchases across Britain between July 2020 and September 2021. 

This was below the 242,400 purchases which were made during the 15-month run up to the introduction of the 3 per cent stamp duty surcharge for landlords on 1 April 2016.

During the stamp duty holiday, the average landlord who did buy a property saved £3,000, the equivalent of around three months’ rent and a 35 per cent reduction on their £8,500 average tax bill before July 2020.

What was the stamp duty holiday?  

The stamp duty holiday was introduced by chancellor Rishi Sunak in July 2020, in a bid to jump-start the housing market after the first national lockdown. 

It lasted for 15 months in total. From July 2020 to July 2021, both owner-occupiers and investors could save up to £15,000, as they did not need to pay stamp duty on the portion of any property purchase under £500,000.

From July to September 2021, the limit was reduced to £250,000, offering them a maximum saving of £2,500. The rates returned to pre-pandemic levels on 1 October.  

Average bills are set to return to around £8,400 from 1 October 2021, just below what investors were paying on the eve of the stamp duty holiday. 

The figures suggest landlords were not willing to outbid home buyers as house prices continued to rocket. 

This may have been a result of increasing taxes and regulations on landlords over the past few years, which started with the introduction of the 3 per cent surcharge in 2016. 

At the time, many landlords bought up properties beforehand to get in under the wire.  

As well as the standard stamp duty bill, buy-to-let investors and anyone buying a second home must pay a 3 per cent surcharge on top of the standard rates for owner-occupiers.

In the run-up to that policy being introduced, the proportion of home sales made up by landlords in Britain was much higher at 17 per cent, according to Hamptons.

The deeply unpopular surcharge is often cited by landlords as a reason for not expanding their portfolio, or even quitting the market altogether.

Landlords bought up more homes ahead of the introduction of new taxes on buy-to-let in 2016, than they did during the stamp duty holiday over the past 15 months

Landlords bought up more homes ahead of the introduction of new taxes on buy-to-let in 2016, than they did during the stamp duty holiday over the past 15 months

Overall, the stamp duty holiday meant that the average investor paid less in stamp duty than at any time since April 2016, when the 3 per cent stamp duty surcharge was introduced.

Despite this, the average bill during the holiday remained twice the level it was before the surcharge was introduced. 

What about those landlords who did buy?

There is little indication that landlords who did buy properties during the stamp duty holiday took advantage of the saving to buy bigger properties in more expensive areas.

Instead, 83 per cent of investor purchases were under £250,000, meaning their savings from the holiday were significantly smaller than those enjoyed by home movers.

During the holiday the average price paid by a landlord rose by just 1 per cent to £181,000, despite wider house price growth of 10 per cent over the same period. 

Landlords who did buy homes during the stamp duty holiday paid just 1% more for them, despite house prices as a whole rising by as much as 10% according to some estimates

Landlords who did buy homes during the stamp duty holiday paid just 1% more for them, despite house prices as a whole rising by as much as 10% according to some estimates

According to the September House Price Index from Nationwide, £22,613 has been added to the cost of the average home in just a year, with the average price of a home increasing 10 per cent to £248,742.

Commenting Aneisha Beveridge, head of research at Hamptons, said: ‘The overall impact of the stamp duty holiday on investor activity has been relatively muted.

‘The holiday resulted in a small uplift in the number of new buy-to-let investors, but despite their reduced bills, they were not outbidding owner-occupiers on any significant scale.’

What is happening to rents? 

Average rental growth across Britain hit 8 per cent in September, the third fastest annual rate of growth recorded this year, according to Hamptons.  

Regions in the South of England, but outside of London, led the way.  

The South West saw the highest rent increases in the past year, reaching £1,011

The South West saw the highest rent increases in the past year, reaching £1,011

The average rent on a new home rose 14.8 per cent to £1,011 in the South West, 14.7 per cent to £1,252 in the South East and 10.8 per cent to £1,106 in the East of England.

September marked the sixth consecutive month where annual rental growth hit double figures in the South West. 

The region has benefited from people relocating away from cities during the pandemic, as well as an increased appetite for longer-term holiday lets. 

London rents have also continued to recover. 

Although Inner London was the only region in the UK to see a decline in rents year-on-year, the 4.4 per cent or £100 year-on-year fall was far smaller than the 22.1 per cent decrease recorded in April when the market bottomed out.

In Outer London, rents grew 3.2 per cent annually in September, rising for the thirteenth consecutive month. This kept Greater London rents overall in positive territory, up 1.8 per cent year-on-year.

Beveridge added: ‘While rental growth rates typically peak over the summer months, this year they have continued to rise into the autumn. 

‘This means average monthly rents have passed £1,100 for the first time nationally, led by big increases on larger homes. 

‘The average four-bed home now costs 120 per cent more than a one-bed, up from 95 per cent pre-pandemic. 

‘While we are expecting this growth to moderate in the final few months of the year, it is likely 2021 will mark some of the fastest rates of rental growth in a generation.’

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Leinster’s accuracy proves key as they see off Munster in demolition derby

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Leinster 35 Munster 25

A breathtaking and, it has to be said, physically punishing game, which ebbed and flowed from first to last, ended with Leinster getting more than they needed and Munster coming up short of their targets. Well, to a point.

Munster went into the last game requiring at least two match points for a home quarter-final and a bonus point for the additional carrot of a potential home semi-final.

In the end, they came up with zero, which was perhaps preferable in that it earned them an away quarter-final against Ulster rather than against the Bulls. Even so, the winners of that Irish derby in a fortnight will be away in the semi-finals against the Stormers or Edinburgh.

In the other half of the draw Leinster will host Glasgow in the quarter-finals, and the winners of that tie will have home advantage in the semi-finals.

The mix of requirements made for a thrilling game. Leinster were ultimately the more accurate and pacier side, epitomised by the jet-heeled Jordan Larmour, who made everyone else look like they were being towed and his counterattacking and running led to two of Leinster’s four tries. It was a timely reminder of his abilities, and might well earn him a place on the bench in the Champions Cup final against La Rochelle, who themselves welcomed back Will Skelton off the bench against Stade Francais on Saturday.

Munster’s game didn’t lack for ambition at all, and their similar mix featured classy performances by Thomas Ahern, Alex Kendellen, Jack O’Donoghue and Conor Murray. But they weren’t as accurate or quite as pacey.

This hungry Leinster mix of young and experienced were not in a remotely charitable mood, and shot out of the traps. Harry Byrne’s perfect kick-off was reclaimed by the recalled Ryan Baird and inside 80 seconds Leinster had scored without Munster touching the ball.

Generating trademark quick ball, with Baird making one big carry and Scott Penny a couple, before Ciarán Frawley used an advantage to crosskick perfectly for Penny to gather and use his footwork to step Joey Carbery and finish in the corner.

Harry Byrne didn’t land the difficult conversion, but added a penalty before offloads by Kendellen and Ahern and a couple of nicely weighted grubbers to the edges by Murray and Carbery earned an attacking lineout. The first scrap followed too. Yep, derby on.

Attacking wide and through phases, Munster used an advantage when Carbery pulled the ball back as Keith Earls worked across from his wing and flung a peach of a left-hander for O’Donoghue to take Cormac Foley’s tackle and finish well in the corner.

Leinster’s Rory O’Loughlin on his way to scoring a try despite Keynan Knox and Mike Haley of Munster during the United Rugby Championship match at the Aviva Stadium. Photograph: Laszlo Geczo/Inpho
Leinster’s Rory O’Loughlin on his way to scoring a try despite Keynan Knox and Mike Haley of Munster during the United Rugby Championship match at the Aviva Stadium. Photograph: Laszlo Geczo/Inpho

Next, after Frawley’s spillage, the recalled Andrew Conway chased Murray’s perfectly weighted kick to prevent Larmour gathering, Niall Scannell’s gallop earning another attacking lineout.

Again Munster engineered another free play, and after a strong carry by Kendellen from Murray’s pass behind his back, Mike Haley was sharply on hand to pick up and dive over under the posts.

The force was with Munster, all the more so after Conway cleanly reclaimed another box kick by Murray. But when Kendellen kicked through Larmour beat the flanker’s follow-up tackle and left a trail of four more forwards in his wake before being tackled by Murray. From the recycle, Jamie Osborne stepped and Frawley took a superb line on to his short pass for a clean break and had Foley in support. The 22-year-old showed the quickness from his formative years as a centre with St Gerard’s to complete his first Leinster try on his home debut, and some try too.

The game’s first scrums provided an almost welcome breather. Frawley, after his two sumptuous try assists, had to depart for one of several failed HIAs in the game, and didn’t return.

The lively Earls then countered with Haley, Carbery and Kendellen before Rob Russell’s deliberate knock-on prevented the ball reaching three unmarked players and earning him a yellow card. But Baird spoiled the Munster lineout to protect his side’s 15-12 lead until the interval.

But on the resumption Munster struck. Haley chased his own kick, preventing Osborne from gathering cleanly and Murray was sharply on to the loose ball to skip away from Foley’s tackle and score.

Harry Byrne brought it back to a one-point game after Foley’s high tackle on Josh Murphy, and although Munster were clearly now mindful of the chance for a fourth try when going to the corner, before accepting a tap over penalty to push them four points ahead.

Typical of this match, back came Leinster. First Foley executed a 50:22 and despite just changing their frontrow the maul was gathering speed when it collapsed and Frank Murphy adjudged it a penalty try and sinbinned Niall Scannell.

After Max Deegan’s covering tackle on the ever dangerous Chris Farrell into touch, a lovely launch play and a flatish pass by Foley for Joe McCarthy’s carry over the gainline, was the prelude to Leinster reloading right and another slaloming run by Larmour. An offload by McCarty and fine pass by Deegan created the space for Rory O’Loughlin to use a two-on-two and a mismatch with the covering Kenyan Knox to score.

Suddenly it was 32-22 to Leinster.

A spellbinding spell of offloading featuring Murray, Ahern, O’Donoghue and Kendellen ended with Earls finishing off O’Donoghue’s offload, but Murphy adjudged it forward. Instead, Munster had to opt for another Carbery penalty to complete the first task of getting to within one score before chasing a fourth try.

They became over exuberant and conceded penalties, and although Adam Byrne was brilliantly denied by Carbery and Haley, Harry Byrne’s penalty put them 10 ahead, and more relevantly left Munster without anything from the game and looking at a quarter-final away to Ulster.

They had eight minutes or so to do it. They conjured one punishing phased attack, Carbery’s one-handed pick-up and Murray deliberately knocking on with a penalty advantage and then quickly were two of the highlights, but when Carbery prematurely went wide with a looped pass to Jack Daly he was tackled into touch by Osborne.

And that was effectively that.

SCORING SEQUENCE – 2 mins: Penny try 5-0; 9: Byrne pen 8-0; 12: O’Donoghue try 8-5; 17: Haley try, Carbery con 8-12; 23: Foley try, Byrne con 15-12; (half-time 15-12); 41: Murray try, Carbery con 15-19; 46: Byrne pen 18-19; 49: mins Carbery pen 18-22; 51: penalty try 25-22; 54: O’Loughlin try, Byrne con 32-22; 61: Carbery pen 32-25; 71: Byrne pen 35-25.

LEINSTER: Jordan Larmour; Rob Russell, Jamie Osborne, Ciarán Frawley, Rory O’Loughlin; Harry Byrne, Cormac Foley; Ed Byrne (capt), Seán Cronin, Thomas Clarkson; Joe McCarthy, Josh Murphy; Ryan Baird, Scott Penny, Max Deegan.

Replacements: Adam Byrne for Frawley (27 mins), John McKee for Cronin, Peter Dooley for Byrne, Cian Healy for Clarkson (all 49), Devin Toner for J Murphy (55), Ben Murphy for Foley (58), Alex Soroka for McCarthy (66), David Hawkshaw for H Byrne (76).

Sinbinned: Russell (37-47 mins).

MUNSTER: Mike Haley; Andrew Conway, Chris Farrell, Dan Goggin, Keith Earls; Joey Carbery, Conor Murray; Josh Wycherley, Niall Scannell, John Ryan; Jean Kleyn, Thomas Ahern; Fineen Wycherley, Alex Kendellen, Jack O’Donoghue (capt).

Replacements: Jason Jenkins for Kleyn (49 mins), Keynan Knox for Ryan (54), Jeremy Loughman for J Wycherley, Rory Scannell for Goggin (both 55), Diarmuid Barron for Kendellen (58-61), for Scannell (61), Jack Daly for Ahern, Ben Healy for Carbery (both 64), N Scannell for Kendellen (65), Ahern for Daly, Patrick Patterson for Murray (both 76).

Sinbinned: N Scannell (51-61 mins).

Referee: Frank Murphy (IRFU).

URC quarter-finals (Fri, Jun 3rd & Sat, Jun 4th)
1 Leinster v Glasgow Warriors
2 DHL Stormers v Edinburgh
3 Ulster v Munster
4 Vodacom Bulls v Cell C Sharks
 
Semi-finals (Fri, June 10th and Sat Jun 11th)
Leinster or Glasgow v Bulls or Sharks
Stormers or Edinburgh v Ulster or Munster.
 
Shield winners 2021/22:
Irish Shield:
Leinster
South African Shield: DHL Stormers
Welsh Shield: Ospreys
Scottish & Italian Shield: Edinburgh
 

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Aparto debuts in Spain

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Aparto has unveiled its first student residence in Spain to open in September 2022. Aparto Barcelona Pallars, owned by Commerz Real, is located in the 22@, the city’s innovation district, and accommodates 743 beds covering 26,000m². The cutting-edge facilities at aparto Barcelona Pallars include an external circa 45-metre length infinity pool, a 900 square metre rooftop terrace, 2,500m² of gardens including the Butterfly Garden (named because of the type of plants that attract butterflies), the Smell Garden (due to the mixture of aromatic plants), 1,400m² of amenity space including a gym with a weight, cardio, and yoga studios, two cinema rooms, leisure areas, and a bar offering both food and drink services.

 

In addition, a central feature of aparto’s offering is its first-class experience with a focus on the arts including an initiative in which street artists will design some of the paintings on the building, and a mental health programme available to all students all year around, strengthened by aparto employees receiving mental health training to identify anyone who may need help. 

 

aparto Barcelona Pallars has been designed by the Catalonian architecture studio Battle i Roig, a pioneer in landscape architecture, interweaving structures with natural spaces like gardens. Upon construction completion, the building will receive the LEED Gold and WELL Platinum Certifications for sustainability. 

 

aparto offers students a unique safe study experience and flexible model offering medium and long-term stays, from a few months to a full year, with all-inclusive rates including cleaning, Wi-Fi connection, linen services, and some additional features related to sports and wellness sessions, cocktail and cooking classes, and a series of entertainment evenings including movie nights, sports matches and tournaments. Aparto’s focus is to create places where students feel at home living within a strong community.

  

Tom Rix, director of operations at aparto, UK, commented: “With Aparto Barcelona Pallars, Hines is introducing first-class student housing in Spain. Pallars mirrors what today’s students want in terms of facilities, amenities, community engagement, and wellbeing programmes. We have already successfully demonstrated that this innovative model is in high demand in Italy, Ireland, and the UK and we anticipate the same success here in Spain and can’t wait to welcome students to Barcelona.”

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Crossrail house price boom: Reading, Maidenhead and Slough set to become property hotspots

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Crossrail may be billions of pounds over budget and three-and-a-half years late but it’s finally ready to roll.

This extraordinary feat of engineering is due to be put into service on Tuesday, when it will adopt its correct title of the Elizabeth Line. 

The Queen made a surprise visit to Paddington station this week and officially opened the line.

On the line: The Thames flows through Maidenhead, which will now enjoy a direct link to Central London thanks to its new Crossrail station

On the line: The Thames flows through Maidenhead, which will now enjoy a direct link to Central London thanks to its new Crossrail station

Linking Shenfield and Abbey Wood in the east with Heathrow and Reading to the west of the capital, it will bind together existing commuter railways, accelerating cross-city travel and relieving overcrowding on the London Underground — particularly the often hellish Central Line.

Commuters’ journey times will be slashed; Reading to London Liverpool Street, for example, will take under an hour.

When fully operational it will increase London’s rail capacity by 10 per cent, making it the largest single expansion of the city’s transport network in more than 70 years.

There are still a few glitches to be ironed out. Initially passengers travelling from Reading in the west to Abbey Wood and beyond will have to change at Paddington or Liverpool Street mainline stations. 

Also Bond Street is three months behind schedule. Trains will not call there until later in the year. Yet these delays pale into insignificance when you consider how the Elizabeth Line will transform rail travel in the capital.

Cross town: The Elizabeth line will run east to west across London, starting in Berkshire and ending in Essex

Cross town: The Elizabeth line will run east to west across London, starting in Berkshire and ending in Essex

The new station at Paddington, for example, is the size of three Wembley football pitches, with natural light as far as the platform entry from a nearly 400ft-long glass canopy.

More than £1 billion has been spent on upgrading 31 existing stations and tracks. Spacious tunnels will lead to airy 600 ft platforms, with glass screens at the edge of the tracks, making it impossible to fall under a train. 

Step-free access from street to train will make the service accessible to wheelchairs. 

The nine-car, air-conditioned trains will have colourful bench seats and open interiors with full-width walk-through connections between cars. It will be a world away from today’s cramped, cluttered carriages.

Few engineering projects change the way we live but The Elizabeth Line promises to do just that. People are already flocking to the new stations.

Research from Savills last year found that, over the past five years, homes within 0.6 mile of about half of the stations on the line have increased in price by 25 per cent or more.

It follows that when the sleek and airy new trains come into service, delivering people to their workplaces in double quick time, we can expect a migration to the west of London.

Here are the hotspots:

Reading revival

Outlay: More than £1bn has been spent on upgrading 31 existing stations and tracks

Outlay: More than £1bn has been spent on upgrading 31 existing stations and tracks

Not so long ago Reading was best known for its brewery and its biscuit factory — not any more. 

International companies, including Amazon UK, Virgin Media and KPMG have moved there and with reasonably priced homes, compared to London, the town is already popular with commuters.

‘I recently dealt with a young woman who sold her 750 sq ft flat in London for £600,000 and bought a 1,750 ft duplex in Reading for £650,000,’ says James Hathaway, of Winkworth estate agents.

The town has lots of green space, riverside walks, the Grade II-listed Thames Lido and great shopping, notably in Broad Street and the Oracle centre. The average price of a home sold in Reading was £384,000 last year.

Compare that to the £512,000 average price in, say, East London and you will see why an exodus from the capital is forecast when the Elizabeth Line makes commuting a doddle.

Maidenhead marches on

This Berkshire town is keen to attract the City bankers who had previously been put off living there by having to trek across the capital’s underground system to get to work.

‘The Elizabeth Line changes all that and buyer enquiries have already started booming,’ says Dawn Carritt at Jackson-Stops estate agents.

‘The prospect of living near the river in Maidenhead or in nearby villages such as Sonning and Bray is appealing.’

Maidenhead (with Theresa May as its MP) is on the cusp of a revival. Its 1960s shopping centre is to be transformed into The Nicholson Quarter, a swish mixed-use centre.

The area by the river is being developed and trendy cocktail bars and restaurants such as Coppa Club are thriving — a sure sign of a town on the up.

Slough expansion

Ricky Gervais did Slough no favours when he set The Office there. Yet the town has a lot going for it. It is well located for travel, nestling between the M4 and the M40 and within easy reach of the M25 and Heathrow airport.

First-time buyer portal Share to Buy claims that Slough has been one of the UK’s top ten property hotspots over the past decade with a 73 per cent increase in house prices. 

The Berkeley Group is redeveloping the former Horlicks factory and site to create 1,300 homes.

A small flat sells for £150,000 and a three-bed terrace house for £350,000. The centre is being improved and with the coming of the Elizabeth Line, things can only get better.

On the market… the hotspots 

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