November 27, 2015
Buy to Let
George Osborne has announced that from April 2016, buy-to-let landlords and people buying second homes in England and Wales will have to pay a 3% surcharge on each stamp duty band. It will raise £880m for the government by 2021, but could add between £3,500 and £7,500 to the cost of a £250,000 property, according to CBRE. The surcharge will lift each band by 3%. That means that for properties worth between £125,000 and £250,000, where the stamp duty is 2%, buy-to-let landlords will pay 5%. Lucian Cook of Savills said the biggest effect was likely to be on expensive homes in London. Commercial property investors, with more than 15 properties, are expected to be exempt from the new charges. Hassan Azam argues in the Times that the new charge will make more properties available for first time buyers.