The Chancellor has announced in the Spending Review and Autumn Statement that buy-to-let landlords and people buying second homes will soon have to pay more in stamp duty.
In a post from Brian Milligan, Personal Finance reporter for the BBC, he looks at the implications of these changes on the housing market. Read the article here.
James Birt, Director of Naylor Powell comments “This is rather surprising news. We are not entirely sure it will have too much of an effect on the property market as investors looking to buy a property as a long term investment of 15-20 years will simply have to add this extra cost into their calculations.
We do think, however, this will accelerate purchases currently going through and will no doubt encourage a few investors to make purchases now rather than later next year. This could create yet another artificial increase in demand which is what the Government seem to be trying to prevent.
An increase to landlord costs will inevitably lead to increases to tenants. It will also not encourage buy to let investors to expand their portfolio which does not help to supply the rented sector which is in desperate need of more properties.
Although we do not think this will have significant effect on the buy to let market we are concerned that it will not have the desired effect on the property market and will simply make renting yet more expensive.”
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