Stamp Duty surcharge hitting landlords hard, says Countrywide

first_imgThe government’s assault on the buy-to-let market is having the desired effect on landlords, latest research from Countrywide reveals.It has revealed that since the additional three percent Stamp Duty was introduced in April last year 56 per cent of all purchases the company handled where a landlord and first time buyer competed for a property, the first time buyer won.Johnny Morris, research director at Countrywide (pictured, lefgt), said: “Given their inability to spread the higher rate over a longer period, these micro developers have been the buyers hit hardest by the higher rates. Across the country as a whole, their numbers are running at around half the levels they were.”Countrywide undertook the research between April and December last year and says some 9,000 fewer people buying their first home lost out to landlords than during the same period last year.The shift in activity within the market is down to fewer landlords being prepared to commit to a purchase once a bidding war over a property starts as a raft of measures, including extra Stamp Duty, have dampened landlord enthusiasm for purchasing more properties.This includes a severe reduction in the amount of mortgage interest relief they can claim against tax over the next three years.The Nationall Landlords Association (NLA) says this means many ordinary landlords could be paying an effective tax rate of up to 70 per cent, and that “it doesn’t really make sense for any landlord to buy more property with a mortgage now as their profitability will be severely impaired, unless they are sure they will remain basic rate tax payers,” says landlord and NLA spokesman Richard Blanco (pictured, left).But the likelihood of the government reducing or cancelling the additional Stamp Duty levy remains low, despite desperate calls by many agents and industry organisations to scrap it. The additional duty raised £670 million between April and October last, double the estimate.Residential Landlords Association stamp duty Countrywide January 30, 2017Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles Letting agent fined £11,500 over unlicenced rent-to-rent HMO3rd May 2021 BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Home » News » Stamp Duty surcharge hitting landlords hard, says Countrywide previous nextRegulation & LawStamp Duty surcharge hitting landlords hard, says CountrywideNumber of buy-to-let investors losing out to first time buyers increasing30th January 20170920 Viewslast_img read more

"Stamp Duty surcharge hitting landlords hard, says Countrywide"