Buy to let homes face higher stamp duty

Big Ben in London, United Kingdom

The chancellor has announced that people buying second homes will have to pay a higher rate of stamp duty. From April 2016 an extra 3% surcharge will be added to each stamp duty band.

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.

Posted by: Samantha Turner-Meyern Categories: Buying, Buying Property, House Prices, Latest News, Letting, Property Advice, Property Market, Property News, Uncategorized Tags: , , , Comments Off on Buy to let homes face higher stamp duty

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