The chancellor said that this new surcharge would raise an extra £1 billion for the treasury by 2021.
Landlords have reacted furiously to this change, with the outcome being that this could hold up any further investment in rental properties.
Other changes announced included an extended Help to Buy scheme in London and more money for the Starter Homes programme.
For the average buy to let purchase of £184,000 will mean that a landlord will pay an extra £5.520 from April 2016. Commercial property investors with more than 15 properties are said to be exempt from the new rates.
Up to £60 million of the money raised from the stamp duty surcharge will go to help home buyers in England in places where holiday homes have driven up the prices of property.
In total the government have said they will be putting an extra £6.9 billion into housing. £4 billion of this will lent to housing associations and local authorities, allowing them to build more homes for shared ownership.
Another £200 million will be used to build homes for rent, which will in the long term allow tenants to save for a deposit to buy their own property.