NAEA on the radio - SDLT

Thursday 07 April 2016

The 3% stamp duty surcharge came into effect on 1 April for buy-to-let properties which sees stamp duty go from £2,500 to £10,000 on a typical £250,000 property. This meant that many investors were keen to get deals done to avoid paying more post 1 April.

Share Radio, the UK's first national radio station dedicated to business, finance and money were just one of the media channels keen to grab an interview with NAEA President Martyn Baum on the morning after to get an industry professional's analysis of the pre-surcharge rush. 

>> LISTEN HERE <<

In the interview he talks about the frantic period in the run up to 1 April including his first-hand experience and that of the UK's biggest conveyancers who say that completions were up 20% up on any other month. 

One off investors may consider jumping ship and investing money elsewhere. But whilst professional landlords were also keen to complete deals ahead of the surcharge, he thinks it's unlikely that we'll see swathes of professional landlords with several properties exiting the industry altogether as they are more likely to see buy-to-lets as a long-term investment. 

Some landlords who failed to get deal through before 1 April may decide to renegotiate the sale to account for some of the additional costs or pull out of a sale altogether, which may have a knock on affect on other buyers within the chain. 

There could also be a glimmer of hope for first-time buyers who could face less competition from chain-free and cash rich buy-to-let landlords as a result of the surcharge and the introduction of tougher stress testing for buy-to-let mortgages.

Martyn said: The shake-up could "allow space for first time buyers to come back in to the market place and have a little less competition and a little more elbow room". 

Martyn's analysis and comments also featured on Radio 2 and in The Guardian where he is quoted as saying - "I've heard of estate agents and conveyancers staying open till 10pm and then opening again at 5am" to keep up with transactions.

City AM, The Sun, The Metro, This is Money, Mail Online, and many regional newspapers and online broadcasters also featured comments from Martyn.