• 60 per cent of multi-property landlords have expanded their portfolio since the introduction of the Stamp Duty Holiday in July 2020, illustrating the impact of the tax break on the property market
• Rural areas have become more attractive, with 43 per cent of multi-property landlords choosing to expand their property portfolio outside of major cities, with many anticipating an exodus from cities due to the pandemic
• A third (30 per cent) of multi-property landlords plan to cut corners to complete property purchases before the end of the Stamp Duty Holiday
• Nearly half (45 per cent) of multi-property landlords fear the impact that the end of the Stamp Duty Holiday will have on the value of their property portfolio

60 per cent of multi-property landlords have expanded their property portfolio since the introduction of the Stamp Duty Holiday in July 2020, including a staggering eight in ten (79 per cent) commercial landlords, according to new research from Direct Line business insurance.1

Multi-property landlords have been strategic with their purchases. 43 per cent have invested in properties outside major cities, with 82 per cent doing this because they expect a significant number of renters to move out of cities due to the Covid-19 pandemic and upsurge in remote working.

Half of landlords feel the Stamp Duty Holiday has kept the property market afloat during the Covid-19 pandemic, while more than four in ten (43 per cent) say that it has encouraged them to fast-forward plans to purchase properties.

So it’s understandable many are worrying about the Stamp Duty Holiday coming to an end as planned on 31st March 2021. Nearly half (45 per cent) of multi-property landlords fear the impact this could have on the market and the value of their portfolios. And this is prompting many to take desperate measures to try to get their purchases over the line before the expiration date.

A third (30 per cent) are prepared to cut corners to ensure their purchases are completed before the holiday ends – for example, taking on aspects of the conveyancing process themselves or even skipping a rigorous property survey. Three quarters of multi-property landlords would pull out of transactions if they did not complete their live purchases before 31st March.

The pandemic is also influencing the way landlords use their properties. 36 per cent have changed their type of let since March 2020:

• 14 per cent have listed their property as a holiday home, short-term let or Airbnb 
• 14 per cent have changed their property to a bed and breakfast
• 11 per cent have changed commercial property to residential
• Seven per cent plan to make changes in the future

Jamie Chaplin, Landlord Business Manager at Direct Line, commented: “It’s been encouraging to see the property market so buoyant since the Stamp Duty Holiday was introduced.

“And it’s been interesting to see more landlords invest in rural properties, suggesting they’re responding to the rise of flexible working and the possibility of people leaving major cities to work remotely.

“As landlords focus on growing their portfolios and taking advantage of the Stamp Duty Holiday, we’re here to help them protect their new properties and provide them with the value they need from their insurance offering. At Direct Line business insurance, we offer Landlord Insurance designed to help get your property back up and running should something go wrong”.

For further information on Direct Line’s Landlord insurance please visit our webpage here: https://www.directlineforbusiness.co.uk/landlord-insurance

ENDS

Notes to Editors

1. Survey conducted by Opinium of 200 multi-property landlords on 8th- 11th February 2021.

For further information please contact:

Direct Line Group
Unni Henry
Senior PR Consultant
Tel: 01903 636 149
Email: [email protected]

Eulogy
Michael Hindmarsh
Account Director
Mobile: 07415 396642
Email: [email protected]

About Direct Line business insurance

Launched in 2007 Direct Line business insurance now has over half a million customer policies, proving a flexible range of insurance products for the landlord, van and small business sectors.

Direct Line business insurance policies are underwritten by U K Insurance Limited, Registered office: The Wharf, Neville Street, Leeds LS1 4AZ. Registered in England and Wales No 1179980. U K Insurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Direct Line business insurance and U K Insurance limited are both part of Direct Line Insurance Group plc.

Customers can find out more about Direct Line business insurance products or get a quote by calling 0345 301 4827 or visiting https://www.directlineforbusiness.co.uk