Stamp duty hand-out to give housing market a boost
Landlords might not feel like winners after the Chancellor’s mini-budget, but it could lead to them finding investment opportunities
Chancellor Rishi Sunak is expected to introduce an immediate reduction in stamp duty in his mini-Budget on Wednesday, and although buyers of second home or buy-to-let properties might not get a similar incentive, mortgage advisors and property experts reckon it could help get the housing market moving.
Currently home buyers don’t pay any stamp duty on the first £125,000 of homes, then 2% of the value of the home up to £250,000 and 5% on the next £675,000, while buyers of second homes and buy-to-let properties have to pay an extra 3%.
Mary-Anne Bowring, group managing director at Ringley, believes buy-to-let investors should be encouraged to return to the rental market to boost the supply of homes. “Eliminating additional stamp duty for buy-to-let investors would help stimulate the supply of rental homes while also driving wider activity in the housing market,” she says. “Landlords are a crucial source of development finance through off-plan sales and will help support getting Britain building again.”
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