The Chancellor has confirmed that the surcharge on buy-to-let properties will be extended to larger landlords too and will now apply to landlords who buy more than 15 properties. Reports indicate that this change will raise stamp duty charges for all landlords large or small. For example, a landlord who brought a £200,000 buy to let would currently pay stamp duty of £1500. Following the changes confirmed in todays Budget the cost from the 1st April will be £7,500.
Stamp duty changes will distort the housing market
Some commentators have argued that this change will put the build-to-let initiative in jeopardy. Personally, I think it would have been unfair to treat large landlords from smaller ones. Why should the big boys have the benefit of a big tax break! Arguably, though there is another debate. Should landlords pay more to purchase the same property compared to other purchasers? To me this will distort the functioning of the housing market in the long-term and will have a range of unintended consequences affecting the whole housing market.
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