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The Residential Landlords Association is warning that the Chancellor’s stamp duty hike is almost certainly going to have a negative impact on the private rental sector.
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They say the end result will be higher rents and an even greater shortage of rental homes for desperate families.
Stamp Duty Hike
The Chancellor’s announcement that an extra 3% stamp duty would apply to buy-to-let investors and anyone buying a second home came as a bit of a thunderbolt from the blue. George Osborne stated that his intention is to solve the UK housing crisis, but the RLA says its focus is more on helping first time buyers step up on to the housing ladder.
“The biggest losers from the Autumn Statement are tenants who will now find it even harder to get the accommodation they want at a price they can afford,” says Alan Ward, chairman of the RLA.
“The extra stamp duty on buy to lets will exacerbate an already serious shortage of properties in many areas reducing choice and driving up rents. The government should be encouraging landlords to invest, not doing everything they can to discourage them.”
Is Buy-to-Let a Good Investment?
Many landlords are considering whether buy-to-let is a good investment any more. With recent changes to mortgage interest relief as well as the hike in stamp duty, buy-to-let is no longer such an attractive option. And yet, the private rental sector has been responsible for the majority of extra homes in the UK since 1996, so if landlords start to pull out of the sector, we could be on the verge of a major housing crisis.
