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TODAY'S OTHER NEWS

Rishi Sunak slammed for supposedly ‘helping people invest in BTL properties’

Labour has criticised the government’s decision to introduce a stamp duty holiday, claiming it offers a “huge bung” to those buying additional properties, including buy-to-let landlords, 

Last week’s summer statement provided a much welcome boost for property buyers who stand to benefit from the stamp duty holiday. 

The levy has been scrapped immediately for all homes under £500,000, to kickstart the stalled housing market and galvanize the flagging economy. 

The chancellor Rishi Sunak said the move would benefit nine in ten homebuyers, saving £4,500 on the average purchase.

But with the threshold raised, purchasers, including buy-to-let landlords, acquiring a property for less than £500,000 will save up to £15,000 on their total tax bill.

However, the 3% surcharge for additional homes, including buy-to-let properties, still applies on top of the revised standard rates, so purchases of homes valued up to £500,000 will attract a 3% stamp duty bill.

But Labour claims that allowing BTL landlords to benefit from the stamp duty holiday would cost the taxpayer £1.3bn, which could be better spent elsewhere.

The party has written to housing secretary Robert Jenrick, calling for him to exclude second homes from the stamp duty cut. 

The money could fund the gap in local councils’ finances, according to Labour.

Shadow housing minister Thangam Debbonaire said: “It is unacceptable that the chancellor tried to sneak out this huge bung to second homeowners and landlords while millions of people are desperate for support.

“He should be targeting support to those who need it, not helping people invest in buy-to-let properties and holiday homes.

“An unnecessary subsidy for second home-owners will only worsen the housing crisis by reducing the supply of homes overall.

“We need a credible plan from Tory ministers to build the homes our country needs and get people on to the housing ladder. We didn’t see that last week.”

Poll: Do you welcome the fact that the chancellor has announced a stamp duty holiday until next March?

PLACE YOUR VOTE BELOW

  • Mark Wilson

    The government on behalf of the the country can not afford a property crash. The stamp duty discount may be enough to tempt some BTL speculators to purchase. Time will witness if that was a good move as the deepth of the economic decline is a total unknown. If the purchase requires funding the risk needs to be understood.

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    It isn't a bung to investors in BTL and second home owners. The 3% penalty charge still applies and indeed will now be funding the entire stamp duty take for properties up to £500,000. Most first time buyers will not benefit unless low-deposit mortgages are reinstated. I suspect many will want to wait and see which way property prices are going to go anyway in case they get stung by a dip in prices, which may not be of so much concern for a long-term investor who can ride out any temporary falls..

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    “It is unacceptable that the chancellor tried to sneak out this huge bung to second homeowners and landlords while millions of people are desperate for support." What huge bung ? The 3% surcharge is still there as is the turnover tax. The emotive language suggests more populist band-wagoning rhetoric than anything helpful. Perhaps trying to think out original policy that might help younger folks in this challenging economic situation could be a better use of time.

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    Lefties are never happy! If the BTL penalty were increased they would initially be happy until they saw that it led to higher rents.

  • Peter Meczes

    How does it cost the revenue “£1.3 billion that could be used elsewhere”?? The tax is only paid if property is purchased. Otherwise there is no tax to be collected. The fact that landlords still pay 3% means that there is tax £ flowing into the exchequer. Labour as usual are just beating the drum!! It’s quite frightening to to hear this rubbish spouted from the second largest political party. They will only be happy when the lefties control the country and abolish entrepreneurship and capitalism completely.

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    entrepreneurship by definition is a risk taker, or innovator, renting out homes is showing neither it does not create extra jobs it just prevents a property being an owner occupier home rather than an investment, it just creates life long rent slaves

     
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    David Edmunds - it does not create life long rent slaves. It creates rental homes for people who are unable to buy ie people with earnings who don't earn enough to qualify for a mortgage, people on benefits, people with poor credit who can't get a mortgage, people who want to purchase but need to save for a deposit. Perhaps we shouldn't have any rental properties & anybody who can't afford or can't get a mortgage could just live on the streets!! There's a good idea for you!

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    What a load of rubbish I’m sorry the amount of work I give plumbers, electricians, drainage, painters, carpet fitters, joiners, Gardner’s roofers the list goes on and most get the large chunk of their work some all of their work from landlords. If you want to buy a house you can most cannot afford and without the buy to let market offering affordable high quality accommodation we would have a homelessness crisis of epic proportions. Do your homework and don’t by into those Sham charity’s like Shelter who don’t house anyone and listen to the absolute twaddle that they spout.

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    Plus investing in run down Houses and renovating them not a risk ???

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    I cannot believe how some people think, a big bung for buy to let LL's really are you mad ?. There is still 3% Stamp Duty Land Tax on buy to let property which is far more than traditional taxation on Property, why can't we be treated like everyone else, the 3% example on £500k is still £15k SD on that which second home buyer has to pay, so no bung for LL's / second home buyers but £15k bung for revenue, we can do without people doing us favors like this.

  • Andrew Adnell

    These Marxists seems to forget 1). That Landlords are part of the wider UK society - we are not horrible aliens from another planet. 2). We are tax payers and voters like everyone else 3). We provide vital and much needed homes to our tenants 4). We contribute immensely to our local and national economies by giving jobs to tradesmen and material suppliers. We even pay the odd council tax to support our local councils. It is high time Landlords collectively take an anti-Labour campaign back to these no good for nothing, clueless opposition politicians. I'll readily lead such campaign.

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