The government is planning more stamp duty on homes purchased for rent in order to ease the housing crisis, according to reports. Buy-to-let landlords may face a hike on the additional 3% stamp duty rate they have to pay when buying a property, according to The Sun newspaper.
In his column, political writer James Forsyth revealed that one option being considered to raise money ahead of the Budget this autumn is a further increase in the stamp duty rate for buy-to-let properties.
“This would raise money for the Exchequer and help to keep house prices down. But if the Government is serious about helping more people on to the property ladder, as opposed to just raising yet more money from stamp duty, then what’s needed is changes to the planning laws to get far more homes built where people want to live,” he wrote.
In April 2016, a 3% stamp duty surcharge was introduced by then Chancellor George Osborne on additional homes – that is, both buy to lets and holiday homes. According to last week’s analysis of HMRC stamp duty statistics, receipts for the second quarter to June 2018 were 13.8% down to £317m, compared with the same period a year ago.
In last year’s Autumn Budget, stamp duty land tax (SDLT) on homes under £300,000 was abolished for first-time buyers from 22 November 2017.
This means that first-time buyers of homes worth between £300,000 and £500,000 do not pay stamp duty on the first £300,000. They pay the normal rates of stamp duty on the price above that, with no relief for those buying properties over £500,000.
Source: Your Money