Government plan to increase the rate of Stamp Duty in the buy to let industry
Posted 15 Dec 2015 09:00:00
People are outraged by the government’s plans to increase stamp duty rate. This will affect people who want to buy their first or second home in 2016. The stamp duty will increase by 3% if the property is for buy to let purposes. The changes will result in houses prices getting higher between now and next April meaning a huge drop in buy to let investment. There will also be an increased difficulty for new landlords wanting to enter the market so the gap between supply and demand will be even bigger and rent prices will be higher.
The stamp duty changes will make initial costs higher as people will have to pay stamp duty when they purchase a house and capital gains tax within 30 days of the sale.