Landlords set to 'accelerate' plans and beat stamp duty hike
Chancellor George Osborne has announced plans to make it more expensive for landlords to purchase buy-to-let properties from April next year.
During the Autumn Statement he shocked the market by adding a three percentage point stamp duty surcharge on buy-to-lets and second homes.
Even though the move is designed to make it easier for younger buyers to get on the property ladder, this may not happen immediately.
Matthew Hall, head of tax at accountancy firm Wilkins Kennedy, says he is expecting investors to push up prices in the short-term as they rush to buy before the stamp duty hike kicks in.
He was quoted as saying: “Those who have been considering investing in property could decide to accelerate their plans following today’s announcement. This could mean that it will have the opposite effect over the next few months until April 2016 as investors flood the market, driving up house prices in the process.”
The government will consult on the policy detail and decide whether it is appropriate for corporates and funds owning more than 15 residential properties to be exempt from the tax.
Low mortgage rates
Many of the banks and building societies are offering their lowest ever buy-to-let mortgage rates. For example, Accord Mortgages has a sub-2% fixed rate deal.
If you would like help to secure a fast buy-to-let mortgage offer, call Trinity on 020 7016 0790.
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