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November 27, 2015

Stamp Duty to have wide ranging effects


Warnings have been raised over the Chancellor’s stamp duty increase for buy-to-let landlords. Rents could rise owing to a drop in supply of rented accommodation and landlords seeking to offset their stamp duty bill by raising their charges, while the supply of homes for purchase could fall as investors who fund new developments are deterred by the tax increase. Additionally, the IFS warns that tens of thousands of landlords will rush to complete their purchases before the charge kicks in. Adam Challis of JLL said: "New-build properties are heavily reliant on off-plan investors to trigger development finance. A reduction in demand from this group will dramatically reduce the viability of many new-build schemes, reducing supply.” IFS economist Stuart Adams said: “Thinking about the longer-term effect, at the margin the policy is likely to raise owner occupation rates. It will make rental properties and second homes more expensive and therefore discourage the purchase of properties for that purpose." The Times’ Bricks and Mortar supplement features analysis of the impact of the rise on house buyers and landlords.
The Daily Telegraph, Pages: 1,11   The Daily Telegraph, Page: 4   The Times, Bricks and Mortar, Page: 7   The Times, Bricks and Mortar, Page: 4   The Guardian, Pages: 14,15   Evening Standard, Page: 9