Andy Sommerville, director of Search Acumen, comments on the RICS Residential Market Survey for March 2016:
“RICS members’ suspicions that activity would slow down as a result of the new buy to let stamp duty surcharge seem to have already been confirmed by the easing of demand in March, with new instructions stalling and short-term sales expectations dipping.
“These changes were always going to fuel demand from prospective landlords and second homeowners, and the slight lull in March suggests that the majority did not leave completion until the very last moment.
“Conveyancers were still exceptionally busy in March however, with many under pressure to deliver for those clients looking to make it over the line ahead of the changes coming into effect.
“The impending lull in activity in April should come as no surprise to conveyancers, many of whom have been preparing for this dip in activity for some time now.
“However the bigger picture suggests this will only be temporary – buy to let property remains a very attractive investment, and the cost of the extra stamp duty is far outweighed by rental yields and long-term capital growth.
“The demand for homes continues to significantly exceed supply, and there is no sign of that changing any time soon.”
