New research shows that, since 2016, the average stamp duty payment on buy to let homes has increased by £11,848 in England, - and much, much more in some specific areas.
In April 2016, the UK government introduced a stamp duty surcharge on buy to let and other so-called additional homes.
Prior to this change, the average stamp duty payment owed on a buy to let in England was £1,953. A month later in April 2016, immediately after the rules changes were announced, this increased to £8,689 - an immediate 345 per cent hike.
Today, the average stamp duty paid on a buy to let purchase has climbed to £13,801, a 607 per cent increase compared to the cost prior to the 2016 change.
The current average buy-to-let stamp duty bill of £13,801 means that purchasing a rental property today will see investors pay 183 more in stamp duty compared to a regular homebuyer (£4,876).
Regionally, the biggest stamp duty surcharges are found in the North East where the bill is a remarkable 777 per cent higher on a buy-to-let investment than it is for those purchasing a primary residence.
This is followed by Yorkshire & Humber (401 per cent), the North West (384 per cent), East Midlands (313 per cent) and West Midlands (312 per cent).
Despite these significant premiums found across the English market, they’re not as high as the buy to let stamp duty premiums paid in the other UK nations, under the schemes various other guises.
In Northern Ireland, the premium is 624 per cent versus that paid on an owner occupier house purchase, while in Wales (894 per cent) and Scotland (997 per cent) the gap is even bigger still.
Almas Uddin of Revolution Brokers - which commissioned the research - says: “When the stamp duty rules were changed in 2016, it was a move by government to deter landlords from snapping up property that could otherwise be bought by a first-time buyer.
“But despite buy to let properties now commanding a hefty stamp duty premium regardless of where you’re looking to purchase, there is still a healthy appetite for investment.”
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