Conveyancers as well as Lenders across the nation have experienced the detrimental effects the new Stamp Duty Land Tax (SDLT) rules, which came into force from 1 April 2016, have had on the Buy-to-Let market.
The new SDLT rules impose higher rates of SDLT on purchases of additional residential properties, the higher rates being 3% above the standard SDLT rates. This has deterred home owners from increasing their property portfolio in the UK as the rules also apply to properties owned abroad.
One may argue the SDLT uplift on purchases of additional residential properties has had a positive impact enabling first-time buyers onto the property ladder however, one may also argue that UK house prices have dropped due to the SDLT increase as well as Brexit. The drop in house price on the one hand is brilliant for first-time buyers hence the increase in firs-time buyer mortgages however Estate Agents, amongst Conveyancers and Lenders, have also felt the plunge.
In recent articles Haart, one of Britain’s largest estate agencies, has called on the government to reverse recent changes to the stamp duty tax with the hope to reinstate, in particular, the Buy-to-Let market as well as property value.
Will the government take this onboard? Will a new Bill come into force? Only time will tell.