Effect of Stamp Duty on the Market

Based on property sales over the last year,  the additional 3% levy for a second home apartment/terraced property will add an average of £8,053 to the price of a property across our area. However, with the Office of Budget Responsibility predicting that house price growth will average 4.8% over 2016, those investing in a second home here would benefit from a £12,885 increase in capital value, more than eroding the additional stamp duty within a year. With average rents for a two bedroom property across our area around £1000 per month, landlords can expect a gross yield in the region of 3.6%