According to a Hamptons report, low levels of buy-to-let activity have driven up rents in the UK.
During the 15-month stamp duty holiday, the proportion of total purchases made by buy-to-let landlords increased by just one percentage point, from 11 to 12%, as investors failed to outbid owner-occupiers.
"The holiday resulted in a small increase in the number of new buy-to-let investors but, despite their lower bills, they were not outbidding owner-occupiers on any significant scale," said Aneisha Beveridge, head of research at Hamptons.
Rishi Sunak will temporarily reduce stamp duty in July 2020 in an effort to revitalise the UK property market and spur the country's economic recovery from Covid-19.
Landlords saved an average of £3,000 during the stamp duty holiday, as the average property investor's tax bill dropped from £8,500 in the month preceding the holiday to £5,500 during the break.
Investors did not reinvest their savings in property, as buy-to-let landlords' prices increased by only 1%, to £181,000, during the stamp duty holiday. Over the same time period, house prices in the country increased by 10%.
Sales to buy-to-let landlords increased the most sharply in the North East of England, where the proportion of homes sold to investors increased from 21% to 29%.
Rents in the United Kingdom increased by 8% in September compared to the previous year, bringing the average monthly rent to £1,109.
Rents in the South West, South East, and East of England rose sharply as a result of strong demand for larger houses, while rents in inner London fell for the 20th month in a row.
"A lack of stock in the rental market has supercharged rents," Beveridge added.
"While investor purchases increased slightly during the spring, it was insufficient to support stock levels." This has fueled rental growth, with rents rising more than twice as fast as they did in September of this year.
"Southern areas continue to have the highest rental growth." The pandemic-induced race for space is still driving demand in areas within easy reach of the capital.
"However, with stock short in the sales market as well, we're also seeing an increase in the number of homeowners becoming temporary renters after selling their homes in order to break their chain."
"And this is increasing demand and fueling rental growth, especially for larger properties."