Landbay has predicted that ongoing demand for buy-to-let properties will mitigate any impact from the end of the stamp duty holiday.
The lender said that the stamp duty holiday was a welcome catalyst to home buying with Bank of England figures showing a 26.5 per cent year-on-year rise in the value of gross mortgage advances in the first quarter of the year.
No stamp duty is being paid on a residential property bought for up to £250,000 until 1 October onwards when the nil rate band will return to the standard amount of £125,000.
Landbay said that when the break ends and normal rates apply from the start of October, this will clearly have a greater effect on would-be landlords and second home seekers because of the continuing three per cent surcharge on additional property purchases.
However, the lender said that demand remains robust because of the enduring mismatch between supply and demand, shown by the market reaching a record high this summer.
Landbay said its own research has found there has been a shift away from amateur landlords who own one or two buy-to-let properties, towards professional and semi-professional landlords who treat it as a business and the lender expects this to continue.
Read more: Landbay reduces BTL rates again
“The shortage of property for rent is directly linked to growing demand, which in turn is powered by a trend away from home ownership,” Landbay said in a blog on its website.
“Reluctantly, many would be buyers have had to turn their backs on buying as property prices have increased, especially so over the period covered by the stamp duty land tax holiday.
“The future for buy-to-let, despite the moves to curtail tax benefits, remains strong. For landlords, funding is plentiful and interest rates and loan-to-value criteria are at their most attractive at the moment.
“The private rental sector is fundamental to the housing market and will continue to play a vital role in the UK’s housing market.”
Read more: Landbay launches green mortgages