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Buy-to-let landlords and people buying second homes will soon have to pay more in stamp duty, the chancellor has announced. George Osborne made the surprise announcement in his Autumn Statement, alongside a pledge to encourage a vast house-building programme and to extend the Help To Buy programme by a year to 2021.

From April 2016, those in England and Wales will have to pay a 3% surcharge on each stamp duty band and understandably there’s been an angry reaction from letting agents and landlords. George Osborne said the new surcharge would raise £1bn extra for the Treasury by 2021.

‘Whilst the increase in stamp duty might be good for first time buyers, it will eventually have a negative impact on buy to let investors and subsequently the rental market’, commented Jonathan Detheridge, Managing Director at Granger & Oaks. It's the second time landlords have been hit in six months, after Osborne scrapped relief on mortgage interest payments during his pre-election Budget. Landlords with higher mortgages and therefore particularly affected by the changes to tax relief announced in July (see Summer Budget and Landlord Tax Changes) are likely to be especially cautious going forwards, which may ultimately lead to a shortage of good quality properties. Put simply, fewer landlords will enter the market, there will be a lack of supply and rents will be likely to rise.’

Buy to Let investors considering expanding their portfolio’s and who wish to take advantage of the current stamp duty rates, can view all our current for sale listings here. Please do not hesitate to contact us on 0115 9629770 if you would like to arrange a closer inspection.

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