There’s been a response of dismay and outrage from landlords in the wake of the latest tax increase announced by the Welsh Government.

With immediate effect there’s been a 1% rise in each band of Land Transaction Tax for landlords – that’s the Welsh equivalent of stamp duty. 

Finance Secretary Mark Drakeford says the LTT bands for additional homes will now be:

• £0 to £180,000 up to 5% 

• More than £180,000 up to £250,000 – 8.5%;

• More than £250,000 up to £400,000 – 10%;

• More than £400,000 up to £750,000 – 12.5%;

• More than £750,000 up to £1.5m – 15%; 

• Above £1.5m – 17% 

The National Residential Landlords Association says this change has major implications for landlords across the Welsh private rented sector, who will see the costs of acquiring additional property, and consequently of providing homes, increase significantly.  

Association chief executive Ben Beadle comments: “This move by the Welsh Government will do nothing to help renters who are already struggling to find a home to rent.  

“To discourage investment in the market with punitive taxation, at a time when Wales needs many more homes for rent, is a frankly baffling move. 

“Today’s announcement will worsen the ongoing shortage of homes, narrow tenant choice, increase rents and cause misery for tenants.”