Buy To Bet; What Now?

The effect of this announcement is significant. It adds 3% of the property price of a buy to let or second home to the existing stamp duty land tax (SDLT) payment. As examples, SDLT on a house costing £150,000 will increase from £500 to £5000; on a property costing £250,000, SDLT will rise from £2500 to £10,000.

Analysts predict there will be a short term increase in house prices as investors rush to buy. The long term effect of this initiative is unclear but could see higher rent charges for Tenants as Landlords try to recover their additional costs.

The Chancellor’s rationale is that buy to let investors and second home owners remove opportunity from potential first-time Buyers. The other side of the argument is that his initiative may hurt the Tenants not help them. We will have to watch this space as further details are announced.

If you are a Buyer or a Seller, a Landlord or a Tenant, Gardner Croft’s property lawyers have the skills and experience provide you with the advice that you need and assist you with your transactions. Please contact us if you require advice.

Tim Townsend 26th November 2015