There has been an angry reaction from landlord organisations and others to the news that buy to let and second home properties will be subject to an additional 3.0 per cent stamp duty from next April.
The announcement, in the Chancellor’s Autumn Statement, is expected to generate around £1 billion, much of which will be spent on new homes as part of an extensive programme announced by George Osborne.
The chief executive of the National Landlords Association, Richard Lambert, says: “The Chancellor’s political intention is crystal clear; he wants to choke off future investment in private properties to rent. If it’s the Chancellor’s intention to completely eradicate buy to let in the UK then it’s a mystery to us why he doesn’t just come out and say so”.
As a result of Osborne's July Budget, buy to let landlords are already due to get a lower rate of tax relief on mortgage payments, and a less generous interpretation of the annual wear and tear allowance.
“The buy to let investor should not be blamed for house price rises, rather, this is down to the chronic shortage of housebuilding in this country which is compounded by population growth. We would therefore advise caution against penalising this group of investors when actually other policy areas hold the key to unlock the solution” says Stuart Law, chief executive of Assetz for Investors, a pro-buy to let organisation.