Investor confidence in the buy-to-let market appears strong, despite the extra 3% stamp duty surcharge on second homes.

Investor confidence strong despite surcharge

According to data from the Council of Mortgage Lenders (CML), the number of homes eligible for stamp duty increased to almost 63,000 in the final quarter of 2016. This compares with 30,400 in the second quarter of 2016.

This apparent continued confidence in the market is also demonstrated in figures released by the Treasury, which reports it has collected £1.19 million from extra stamp duty on second homes since the second quarter of last year.

There was a surge in buy-to-let investor activity in the months leading up to April 2016, before the extra 3% surcharge came into affect. However, the fact that transactions on second homes increased in the final quarter of last year indicates that investor confidence has not dimmed.

This is true in Wimbledon, where buy-to-let activity remains steady. Wimbledon Village and the surrounding areas of Coombe Hill have often existed in a property bubble, seemingly unaffected by general economic uncertainty or market fluctuations.

The appeal of Wimbledon Village is as strong as ever, with families in particular. This has kept house prices steady and investor interest strong, which has not been the case for other parts of prime central London in the last year.

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About the author

Nicolas Holmes

Nick joined Robert Holmes to inject fresh ideas and help grow the New Homes department of Robert Holmes as well as helping to inject technology into the business and to grow its client base. Together with one of the Directors Nick is in charge of all Development opportunities that Robert Holmes deals with along with sales. Aged 40, he provides succession together with the two existing directors. Nick has always been focused on building client relationships and sales. He built up his own gallery in Chelsea, where he had a loyal following of customers and artists.

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