When Geroge Osborne raised the stamp duty back in 2014, the property market cooled down. For any stakeholder, including the Landlord and the international high net worth buyer referenced here, the return on investment decreased accordingly.
Interestingly, we now see changes afoot and one which could provide a bonanza for the landlords. Evidence suggests that affluent individuals previously in the market to buy are now seeing the advantages of renting a property instead. When you do the maths, it's easy to see why. Stamp duty on six figure homes is wincingly high making the weekly rental prices on luxury apartments and houses a cheaper option, even after several years.
While this desire for rentals is born out of necessity, it means that anyone looking to be in the U.K. for only short periods of time each year can be increasingly agile. Why not take advantage of the excellent supply of rental homes across London?
And for anyone in possession of a high-end home debating whether to "turn" Landlord, the potential financial rewards of this unexpectedly booming rental market are certainly worth considering.
Although demand for high-end rents is up, so is supply – “people who would have sold are renting out instead,” says Mark Tunstall – so rental prices are staying stable."