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TODAY'S OTHER NEWS

What will the government’s stamp duty holiday mean for BTL landlords?

The chancellor Rishi Sunak is expected to announce tomorrow changes to the levels of stamp duty paid on properties in England, but what does this mean for buy-to-let landlords? 

The announcement is expected to remove stamp duty on properties up to a value of £500,000 for between six months to one year. First-time buyers already enjoy stamp duty relief and do not need to pay stamp duty on their first property purchase up to £300,000 (£500,000 in London).

The proposals to exempt most homebuyers from paying any stamp duty are designed to kick-start Britain’s economic recovery but there is currently a lack of clarity on what this means for property investors. 

The government would almost certainly stimulate housing market activity post-lockdown if it abolishes the 3% stamp duty surcharge for buy-to-let landlords buying additional properties. 

Any significant saving on stamp duty would encourage buy-to-let investors to return to the rental market and this in turn would help meet the rising demand for rental homes and drive transaction levels.

Franz Doerr, founder and CEO of flatfair, said: “There cannot be a healthy rental market without a healthy housing market. The government's plan to institute a stamp duty holiday is welcome, but there needs to be more clarity on the terms of any deal. 

“Cuts to rates cannot wait until the autumn, as the entire market will be paralysed by prospective buyers waiting for their discount. 

“The industry also needs clarity on what this will mean for buy-to-let landlords. Thousands of landlords have left the sector in recent years, and support to help increase the number of homes available for rent is sorely needed.

“With thousands of Britons actively choosing a rental lifestyle that better fits their needs, the government needs to realise that homeownership at all costs is no longer sustainable, and think about how to support both renters and future homeowners on Wednesday.” 

Poll: Would a stamp duty holiday encourage you to invest in the BTL sector over the next few months?

PLACE YOUR VOTE BELOW

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    People need to bear in mind that if the Chancellor does indeed lower stamp duty levels on property purchases, that then demand for them will increase - and guess what - property prices will therefore increase, so purchasers may not make all the Stamp Duty-related gains they'd hoped for,

    Paul Barrett

    Let us hope so as this will assist LL desperate to sell up

     
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    Stamp holiday announced does it apply to buy to let and second home purchases ? Was not clear .....

  • Matthew Payne

    What isnt clear and is also being misreported already is whether it extends to all transactions. Homes and Property just newsflashed that "Home buyers will not pay stamp duty on homes costing up to £500,000" which suggests that it is for properties costing £500k or less only and would not be applicable to a transaction at £600k. The chancellor actually said he was rasing the 0% exemption rate to £500,000 but didnt comment on whether it applied to all transactions, or whether there were any exclusions. Devil may be in the detail, but lets hope its applicable to all, it did sound like that was his intention.

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    3% up to £500k for those buying BTL

     
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    I think the best thought is that anything that reduces our insane taxation levels has got to be very good. The whole country is locked into a surreal state of poverty because of it.

  • Paul Barrett

    If Govt stopped trying to put LL out of business many of these problems would go away.

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    As with any business the more we are taxed, the more costs and the more red tape we are hit with the more we pass on to the end user, in our case that's the tenant.

     
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