Figures released today from Platinum Property Partners (PPP), the specialist buy-to-let business, have revealed that its network of professional landlords made a record number of property purchases in March 2016.
As a result, more than 200 tenants will have access to high quality, flexible and affordable accommodation in the coming months.
Whilst the purchases were no doubt rushed through in a bid to beat the 3% Stamp Duty surcharge on second homes and residential buy-to-let properties, investors would not have made purchases if such high tenant demand didn't exist.
A total of 36 properties were purchased by PPP Partners in March. This is equivalent to three times the average month and a huge 28 more property purchases compared to March last year.
The value of property purchased in March 2016 amounts to more than £12 million, taking the total PPP portfolio value over £213 million.
However, across the wider buy-to-let market, investment in such accommodation could plummet in the future as the cost of running a property business continues to grow due to recent Government legislation.
In addition to the Stamp Duty surcharge, the introduction of Section 24 of the Finance (No. 2) Act 2015 is a real threat to many unincorporated and highly leveraged landlords in the sector who could find themselves running at a loss.
Proven to generate rental income that is four times higher than a standard buy-to-let investment, the PPP model is able to better absorb rising costs. But, as the Government continues to penalise this sector, thousands of landlords will be forced to sell or increase rents.
Steve Bolton, Founder and Chairman of Platinum Property Partners, commented: "For decades, the private rented sector has been providing much-needed homes to meet a growing demand for flexible accommodation. A healthy supply of rental properties keeps rents down, and tax relief on finance costs is a key way for the Government to incentivise investment.
“But this ludicrous legislation will do nothing to increase home ownership. It will only result in rents rising for many tenants, making it even more difficult for them to save for a deposit and get on the property ladder.
“Landlords within the PPP network specialise in purchasing three or four bedroom homes – not ideal first-time buyer properties - often bringing them back into use through carrying out extensive refurbishment, and renting them as high quality shared homes to young professionals.
“Their properties are fully furnished and completed to a high standard while offering tenants comfortable yet affordable accommodation – so much so that they are able to save over £1,600 more a year than those renting alone and save for a deposit in half the time.”
