Here’s a summary of the parts of George Osborne’s Autumn Statement 2015 which affect the property market directly or otherwise.
The major thing that will stand out to Buy-to-let landlords is the second major tax hike in less than a year, as Chancellor George Osborne took action against the apparent growing crisis of home ownership in Britain.
This 3% rise in stamp duty will hit Property investors from 1 April 2016, and the surcharge will also apply to people buying second homes. It means the tax bill on a buy-to-let property costing £250,000 will jump from £2,500 to an astonishing £10,000.
The Chancellor said private landlords making cash purchases are currently unaffected by tax changes announced earlier this year, which cut the amount of relief investors could claim on mortgage interest.
It seems this additional stamp duty will not apply to caravans, mobile homes or houseboats. Mr Osborne said the property tax would raise almost £1bn by 2021, which will help fund the construction of new homes. Around £60m will go to communities in England where the impact of second homes is particularly acute, such as Cornwall.
The government wants to build 400,000 new homes, to help ease the UK’s chronic housing shortage. The Chancellor plans to relax some planning restrictions and to release public sector land with capacity for 160,000 homes.
Many see this 3pc stamp duty rise as “catastrophic news” for tenants, who are likely to face higher rents as landlords look to recoup the charge.
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