One of Canary Wharf’s biggest landlords believes tax changes in the property market will help squeeze out “accidental landlords”.
MyLondonHome’s Steven Herd has welcomed Chancellor George Osborne’s rise in Stamp Duty Land Tax (SDLT) in the recent Autumn Statement .
Founder of MyLondonHome Mr Herd said: “The government’s surprise rise in SDLT for second home owners and buy-to-let investors has a welcome side effect for serious investors in central London.
“Clearly the Government’s aim is to reduce the volume of single buy-to-let investors. Those who have been listening to government rhetoric over the past few years will know that there has been a leaning towards a more professional landlord base, one that attracts institutional investors rather than ‘accidental’ landlords.”
However, he warned that the timing of the announcement was so poor that it could actually help those wanting to invest.
He added: “The expected reduction in part time landlords, will reduce the available rental stock and availability – thus causing rents to rise for the first time in real terms since 2008.
“Serious landlord investors have, in my opinion, a couple of great years of genuine rental increases ahead of them to enjoy, which will far outstrip the increase in taxation on their next purchase.
“As property managers of over £1billion worth of central London rental property on behalf of private landlords, we welcome the rise on behalf of our clients.”