Chancellor George Osborne, unveiled a raft of measures in his spending review to help boost revenues and cut spending, he plans to introduce an additional 3 percent on the stamp duty property tax for second homes and buy-to-let properties from next April. "People buying a home to let should not be squeezing out families who can’t afford a home to buy," he told parliament. But the chief executive of the Federation of Master Builders, Brian Berry, is unsure the extra tax would dissuade investors from buying, instead he suggests tenants will end up footing the bill. "I think buy-to-let buyers will offset the cost and the danger is that might be passed on in terms of higher rents."
Stamp duty, which is levied in bands according to the market value of a property, and an increase on buy to let properties, adds to the woes of landlords as earlier in the year, the government also said that it also intends to restrict the amount of income tax relief landlords could get on residential property mortgages. These changes will not affect larger firms but hit smaller investors as those buying six or more residential properties in one transaction have a lower stamp duty based on the value of all the properties added together unlike small investors who tend to pay per home.
Source: Reuters
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