RICS: Housing demand jumps as buy-to-let investors go on a mad dash to buy properties
Demand for property in the UK hit a three-month high in December, as prospective buy-to-let investors rushed to beat the impending rise in stamp duty.
Figures by the Royal Institute of Chartered Surveyors (RICS) showed the balance of new buyer inquiries rose to plus 16 in December, from plus seven in November.
In November, chancellor George Osborne announced plans to hike stamp duty on buy-to-let homes by three per cent. The changes are due to come into force in April.
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"Those in the industry have been speculating that this is the result of the chancellor's announcement last November," said Simon Rubinsohn, Rics' chief economist.
"Potential buy-to-let investors are looking to pick up properties before the increased stamp duty levy comes into force next April. If that is the case, then we can expect to see the housing market heating up further over the next few months."
The survey also suggested house prices will continue to jump in the coming years, with prices in London, the South East and East Anglia set to rise five per cent a year over the next five years, compared with 4.5 per cent across the whole of the UK.
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"A pronounced imbalance between demand and active supply is continuing to fuel excessive growth in house prices," pointed out Samuel Tombs, chief UK economist at Pantheon Macroeconomics.
"The imbalance between the enquiries and instructions balances remains wide by past standards, and the average number of unsold properties per surveyor fell again to its lowest level since the survey began in 1978, underlying that supply conditions remain tight."