Some 81% of landlord purchases were made under £250,000 in June, signifying that investors are focusing on cheaper homes now the first stamp duty deadline has passed, The Telegraph reports.
The North and the Midlands are being targeted, where a strong share of properties fall under the £250,000 stamp duty bracket.
Aneisha Beveridge, of Hamptons, said: “Landlords have set their sights on the next stamp duty deadline.”
According to Hamptons the number of landlords registering to buy was 24% higher in June compared with the same period in 2020, signifying that appetite has shifted rather than waned.
The average price paid by investors fell by 8% from £192,000 in May to £177,000 in June.
The second stamp duty deadline expires at the end of September, after which stamp duty will be charged on purchases over £125,000.
The second deadline isn’t expected to have as big of an effect as the first, when the minimum threshold moved from £500,000 to £250,000 at the end of June – potentially costing people £12,500 more in tax when buying higher value properties.
Other areas seeing rising activity from investors are Yorkshire and the Humber, where 21% of purchases were from investors in June, up from 11% in May.
Meanwhile the North East saw investors make up 18% of purchases, a month-on-month increase of 7%.