Property remains popular asset
Buy-to-let still seen as key investment option
A Land and Buildings Transaction Tax ‘second-homes’ supplement will be introduced on purchases of additional residential properties, including buy-to-let properties.
The proposed supplement is 3% of the total price of the property for all relevant transactions above £40,000.
ESPC found that 58% attending a recent event in Edinburgh considered a buy-to-let property was for long term income.
Over half were between 35 and 44 years old, and 11% were aged between 55 and 64, indicating that the demographic most interested in buy-to-let are those who already established in a career, and likely to have purchased a first property.
Increasing assets and boosting pension provision (58%) was the key reason for entering the buy-to-let market.
Other reasons for considering a buy-to-let property:
– 11% were looking to buy a property for a child
– 11% were planning on expanding a portfolio.
Four in ten were hoping to let out property in less than three months, perhaps in the rush to avoid paying an extra 3% in tax.
One in five were hoping to rent out a property between three and six months.
One in four were planning to let out property from six months to a year, and the same number were planning to wait a year before rushing into it.
Head of ESPC Lettings Orlaith Brogan said: “Despite a number of changes directly impacting landlords, interest in purchasing a property to let in Edinburgh remains strong.
“Many people in their thirties and forties see property as a viable long term option and these short term changes as something they can overcome.
“Due to Edinburgh’s large student population, as well as young professionals who are not quite ready to get onto the property market, the city has a large tenant market who play a valuable role in the private rented sector. We anticipate this will continue despite the tax changes.”