The latest tax surcharge on landlords for most landlords is a bad move. Higher transaction costs will obviously reduce a landlords long-term investment returns and may well discourage some potential buy-to-let investors from making the leap. It's understandable that having to swallow a 3% stamp duty surcharge will simply be too much for some potential landlords.
Treasuries war on landlordsThe Chancellor & Treasury continues it out and out tax war against landlords. All this comes off the back of the booming buy-to-let sector. Stepping back and trying to view it objectively the Government has given us landlords historically low interest rates and created the conditions for many of us to book record rental profits. The Government 'giveth now they are determined to taketh away too'. If you were being very critical; one could argue that the low interest rates were only instigated to prevent a house price crash of gargantuan proportions that would have dragged down what was left of the British banking system and the economy with it. All this was caused by the Government this time lead by New Labour (do you remember the pre Corbyn lot of Tony Blair and Gordon Brown's et al) failure to act properly to regulate the banks in the first place. I digress.
The stamp duty surcharge could be good for meI'm currently selling a classic buy to let property (2 bed maisonette & still open to offers!). The surcharge due to come in during April could be good for me. The forecast now is for a stampede of buy-to-let purchasers before the deadline. This hopefully will help cement and speed my current sale to a buyer looking for a buy-to-let . This is my silver lining out of a set of onerous tax changes. Not so good for other landlords though. We are after all easy pickings. I do worry that when this current bizarre monetary environment returns to so called 'normal' we could be left we a range of strange and divisive policies that discriminate against landlords and the private rental sector.
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