£6,500 boost to #Ilkley First time buyers
There’s a whole legion of wannabe Ilkley first-time buyers keen to get on the property ladder and they now have a 3% price advantage over the previously quicker responding army of Ilkley landlords with cash at the ready. Since the start of April, buy to let landlords have had to pay an additional 3% stamp duty so whilst demand from some Ilkley buy to let landlords has dropped away, in the interim, it offers Ilkley first time buyers (FTB’s) a chance to fill the vacuum with less competition from cash rich landlords (over two thirds of BTL properties were purchased without a mortgage in the last 7 years) who could bid more and complete quicker.
Looking at the average value of an apartment in Ilkley currently standing at £219,000, that means if our Ilkley FTB went up against an Ilkley landlord, the landlord would have to pay an additional £6,570 in stamp duty. Early antidotal evidence from fellow property professionals in the town is suggesting landlords are reducing their offers slightly on Ilkley properties to reflect the extra stamp duty.
Whilst on the face of it, it appears landlords are being punished by No.11 Downing Street, I actually believe this increase in stamp duty for landlords is a good thing for the Ilkley property market as a whole.
Since 2011/12, the Ilkley property market has performed very well indeed. Over the last 12 months, £236,556,437 has been spent buying 670 Ilkley properties. Figures from the Land Registry have just been released and month on month in our council area, property values are 0.8% lower, yet 2.8% higher year on year. These figures are nowhere near the heady days of 2004 (October to be exact), when Ilkley property prices rose by 29.5% in 12 months.
So as property values in Ilkley (and the UK as whole) start to stabilise and come back to some kind of balance, I am beginning to see savvy landlords view the Ilkley property market in a different light. Even with the Spring rush, gone are the days where you could make limitless money on anything that had a door, a few windows and roof. This stamp duty change has made more and more landlords, after reading the Wharfe Valley Property Blog www.wharfevalleypropertyblog.co.uk take advice on what or not to buy and what to pay, meaning Ilkley landlords are being more calculated with their Ilkley BTL purchases. I am also seeing a variance between relatively brisk current price momentum and softer expectations in terms of property value growth in Ilkley, this in part reflects amplified uncertainty about the short term economic outlook (eg Brexit).
Now I know a lot of Ilkley landlords brought forward their BTL purchases to beat the stamp duty deadline. However, it is probable that hunger from Ilkley investors will return for the right Ilkley property later in the year, especially if it’s at the right price and offers a decent yield. However, in the meantime, Ilkley FTB’s could and should, in the short term, make hay whilst the sun shines plug the gap and grab a bargain!
If you want to read more articles like this about the Ilkley Property Market, as well as checking out regular postings on what I consider to be the best buys in Ilkley, out of the many properties on the market, irrespective of which agent is selling them, then you might like to visit the Wharfe Valley Property Blog at www.wharfevalleypropertyblog.co.uk