Landlords are awaiting the results of a government-led consultation to address the issue of affordable housing in the UK, which is set to see them pay more for their properties.
Homeowners buying a second home, or a buy-to-let property, must pay an additional 3% stamp duty from 1 April 2016. This means properties valued up to £125,000 – currently free from stamp duty fees for buyers – will have a 3% charge. Landlords are expected to be hit by the changes – having to pay higher stamp duty on all their properties.
The government scheme is part of a five-point plan to help first-time buyers get onto the property ladder and encourage home ownership.
The Financial Secretary to the Treasury, David Gauke, said: “Home ownership is a key part of the government’s plan to provide economic security for working people at every stage of their life.”
The plan includes the extension of the Help-to-Buy: Equity loan scheme to 2021 and the delivery of 400,000 ‘affordable housing starts’ by 2020-2021.
Some of the additional tax collected through the scheme will provide up to £60 million to support communities in England. The funding will help increase affordable housing in areas where the number of second homes has been problematic for buyers.
The consultation about stamp duty changes ended on 1 February this year. The results are expected to be announced at the budget on 16 March.
To find out more about the five-point housing plan and how it could impact you, read the government’s consultation on the Gov.uk website.
To learn more about letting with Red Rose head over to our Landlord Page.