Although it is still too early to tell what impact the change in stamp duty charges for investors and buy to let landlords will have on the Manchester property market, it seems as though there has already been some movement in the rental market in Manchester. With these changes coming into effect from the 1st of April 2016, many landlords and investors spent the first three months of the year snapping up property and concluding deals at an affordable rate.
When the time comes to look back on 2016, it is very likely that there will be a notable spike in sales for the opening quarter of the year. The increased level of demand from certain buyers, with a specific deadline to buy, also led to an increase in the supply of property in the market. Many homeowners were concerned that there would be a notable drop-off in demand for property and some buyers who were considering selling later in the year brought their plans forward. With buyers and sellers looking to sell before the 1st of April, it shouldn’t be a surprise to see more rental property on offer in Manchester at the moment, and this looks like the case.
Many observers will keep a close eye on rental market changes
In studies undertaken by an online property platform, the level of properties available to rent in major cities across the UK was examined the week prior to the tax change and the week after. This isn’t the most scientific of tests, and some will cite that the new tax year could be as much of a factor in any change, but the fact that 20% more properties were found on the market after the change compared to the previous week is of note.
The property platform is claiming that this is a big indicator that investors and landlord snapped up a lot of properties in the run-up to the tax changes but we may not have seen the peak of the rise of the market just yet. Just because a property hasn’t been bought doesn’t mean that it is automatically ready to be let out, so we could be seeing an increase in properties due to the past three months purchases, which could means that there will be even more rental properties coming on to the Manchester market in the upcoming weeks and months.
The number of rental properties advertised in Manchester rose by 28.7%, which was an increase on London, which saw a rise in 19.4% but was smaller than the rise in Birmingham, which rose by 49.9%. Mind you, the rise in Telford in the West Midlands was the most notable as the number of rental opportunities being advertised rose by 160% in just one week!
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