One-in-three house sales second homes or for rent
ONE in three houses bought last year in Manchester were purchased as second homes or properties to rent out – the highest proportion across England, Wales and Northern Ireland.
According to HMRC data, second home buyers – including property investors and landlords buying houses to rent out – were undeterred by new taxes on extra properties.
A second home is defined by HMRC as a property that is bought by buyers who already have primary residences.
Last year 33 per cent of the properties sold in Manchester were classified as second homes. Around 2,950 were bought in the financial year 2017-18, with a combined value of £568m.
That’s despite an extra 3pc stamp duty charge on additional properties, introduced in April 2016 as part of a government effort to deter buyto-let landlords, property investors and second home owners.
In England, almost one in four properties bought last year were classified as second homes.
The number bought last year in Manchester has increased by 31pc since 201617, when around 2,250 second homes were purchased.
The National Housing Federation, which represents housing associations, said it was concerned about the impact that buying extra properties has on local communities.
Policy leader Will Jeffwitz said: “In any community, if more homes are bought up as second homes then there are fewer available for residents – and the houses left are more unaffordable.” “If families and young people are priced out of their local communities it can have a hugely demanding impact on community life – with village shops, schools and pubs closing in alarming numbers as a result.” The federation praised the government for reducing stamp duty for first time buyers, but urged that more investment was needed in social housing. Mr Jeffwitz said: “Our solution is that there should be a renewed focus on building more affordable housing, which reduces the impact of a high ownership of second homes.” Lawrence Bowles, research analyst at estate agent Savills, said that first-time buyers are still at a ‘fundamental disadvantage,’ despite the new tax.
He said: “First time buyers will typically be buying with a mortgage, and buy-to-let landlords will often have the money in their account, ready to go. Sellers prefer that over mortgages because of the certainty – there’s always a risk associated with a mortgage.”
In total, around £33m was collected from stamp duty in Manchester last year.
HMRC figures say that duty on additional dwellings made up 60pc of that amount.
The Treasury said that the Government’s priority is to ‘support first time buyers.’
A Treasury spokesperson said: “We want to support the dream of home ownership for the next generation. Higher rates of stamp duty on second homes means we can afford to offer more support to first time buyers through the stamp duty relief.”
STOCKPORT One in five houses bought last year in Stockport were purchased as second homes or properties to rent out, figures show. Last year 20pc of the properties sold in Stockport were classified as second homes. Around 1,220 were bought in the financial year 2017-18, with a combined value of £236m.
SALFORD One in three houses bought last year in Salford were purchased as second homes or properties to rent. Last year 33pc of the properties sold in Salford were classified as second homes. Around 1,920 were bought in the financial year 2017-18, with a combined value of £330m.
ROCHDALE More than one in five houses bought last year in Rochdale were purchased as second homes or properties to let out, figures reveal. Last year 22pc of the properties sold in Rochdale were classified as second homes. Around 760 were bought in the financial year 2017-18, with a combined value of £94m.
OLDHAM One in four houses bought last year in Oldham were purchased as second homes or properties to rent, statistics show. Last year 25pc of the properties sold in Oldham were classified as second homes. Around 880 were bought in the financial year 2017-18, with a combined value of £110m.