There’s a whole legion of wannabe Rotherham first-time buyers keen to get on the property ladder and they now have a 3% price advantage over the previously quicker responding army of Rotherham landlords with cash at the ready.

Since the start of April, buy to let landlords have had to pay an additional 3% stamp duty so whilst demand from some Rotherham buy to let landlords has dropped away, in the interim, it offers Rotherham first time buyers (FTB’s) a chance to fill the vacuum with less competition from cash rich landlords (over two thirds of BTL properties were purchased without a mortgage in the last 7 years) who could bid more and complete quicker.

Looking at the average value of a terraced house in Rotherham currently standing at £85,200, that means if our Rotherham FTB went up against a Rotherham landlord, the landlord would have to pay an additional £2,556 in stamp duty. Early anecdotal evidence from fellow property professionals in the town is suggesting landlords are reducing their offers slightly on Rotherham properties to reflect the extra stamp duty.

Whilst on the face of it, it appears landlords are being punished by No.11 Downing Street, I actually believe this increase in stamp duty for landlords is a good thing for the Rotherham property market as a whole.

Since 2011/12, the Rotherham property market has performed very well indeed. Over the last 12 months, £322,602,861 has been spent buying 2,317 Rotherham properties. Figures from the Land Registry have just been released and month on month in our council area, property values are 1.1% higher, yet 5.3% higher year on year. These figures are nowhere near the heady days of 2004 (November to be exact), when Rotherham property prices rose by 28.8% in 12 months.

So as property values in Rotherham (and the UK as whole) start to stabilize and come back to some kind of balance, I am beginning to see savvy landlords view the Rotherham property market in a different light. Even with the Spring rush, gone are the days where you could make limitless money on anything that had a door, a few windows and roof. This stamp duty change has made more and more landlords, after reading this blog, take advice on what or not to buy and what to pay, meaning Rotherham landlords are being more calculated with their Rotherham BTL purchases. I am also seeing a variance between relatively brisk current price momentum and softer expectations in terms of property value growth in Rotherham, this in part reflects amplified uncertainty about the short term economic outlook (eg Brexit, Issues in the Far East etc).

Now I know a lot of Rotherham landlords brought forward their BTL purchases to beat the stamp duty deadline. However, it is probable that hunger from Rotherham investors will return for the right Rotherham property later in the year, especially if it’s at the right price and offers a decent yield. However, in the meantime, Rotherham FTB’s could and should, in the short term, make hay whilst the sun shines plug the gap and grab a bargain!

For more articles, news, discussions and updates on the property market – Like us on Facebook and Follow us on Twitter