In today’s Autumn Statement, George Osborne announced a 3% increase in stamp duty for buy-to-let properties and second homes from April next year.
Speaking, Osborne said that “more and more homes are being bought as buy-to-lets or second homes”, and that many of them are cash purchases that aren’t affected by the restrictions introduced in the Budget on mortgage interest relief.
The news has been criticised by the industry, with Brad Bamfield, CEO of Joint Equity, describing the announcement as another nail in the coffin of buy-to-let investing”.
“Today’s announcement combined with other changes to buy-to-let mortgages from next year means there is likely to a dramatic fall in the number of people investing in property this way.
“A crucial question is who will support people when buy-to-let landlords sell the properties that have been hit with mortgage restrictions, the removal of tax allowances and rising cost of management all restricting returns?”
Excerpt of full article kindly shared by Financial Reporter. Read full article