The buy-to-let market has shown remarkable resilience following the UK Chancellor’s decision to increase the stamp duty surcharge on second home purchases from 3% to 5%. According to the latest Hamptons Monthly Lettings Index, landlords purchased 10.7% of homes sold across Great Britain in the month following the tax hike, surpassing the 10.2% annual average.
This performance comes despite notable challenges, including a slowdown in rental growth. The index reveals that rents on newly-let properties rose by just 2.6% year-on-year in November, marking the lowest annual increase in four years. However, rental growth remains strongest in Scotland and Northern England, where demand continues to drive higher yields.