Over the last seven years, more than two-thirds of properties in the borough were purchased without a mortgage. However, since the beginning of April, buy-to-let landlords have been required to pay an additional 3% stamp duty.
The effect of this is that demand from some Camberwell buy-to-let landlords has dropped away. In the interim, Camberwell first-time buyers have a chance to fill the vacuum. These buyers now have less competition from those cash-rich landlords, who previously would place higher bids and complete on purchases more quickly.
With the average value of a flat in Camberwell currently standing at £346,400, if a Camberwell first time buyer went up against a Camberwell landlord in a property purchase, the landlord would have to pay an additional £10,392 in stamp duty. Early anecdotal evidence from fellow property professionals is suggesting that landlords are reducing their offers slightly on Camberwell properties, perhaps to reflect the fact that they are now required to pay this additional stamp duty.
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