Councils using ‘Intelligence’ to track down low EPC properties and fine £5,00015:08 PM, 29th March 2021
About 2 weeks ago 36
A report by Lendinvest indicated that out of 105 post code areas 14 had and average house price below £125,000. This will mean that with the 3% surcharge on Stamp Duty for second properties below this figure coming into effect from the 1st of April that landlords looking to purchase in these areas will pay a maximum additional figure of £3,750.
This geographically makes up 13% of England and Wales with Darlington, Halifax and Doncaster being the most affected areas with the additional cost being as much as 8.3 times the average monthly rental income
The Lendinvest report shows 86% of first time stamp duty payers will be in the North and for landlords purchasing in Inner London and Harrow the additional stamp duty cost will be approximately the same as 22 months worth of rent.
The areas of Tunbridge Wells, Dartford and Romford are likely to have an increase of more than 300% versus 200% in Inner London for stamp duty.
The CEO of LendInvest, Christian Faes, said “The stamp duty hike spells bad news for landlords and their tenants. Put simply, when taxes rise, someone has to pay. Our latest BTL Index shows that the likely payer is ultimately going to be the tenant, with higher rents. The Stamp Duty Land Tax hike will cause rental yields to fall for landlords, putting pressure on them to raise the rents they charge.
It’s not just in Inner London, where landlords’ taxes will soar, that we can expect to see landlords and tenants squeezed financially. The Index shows that all across England and Wales, we will many landlords factoring several thousands of pounds of stamp duty tax into their budgets for the first time. Towns like Sunderland, Blackburn, Wigan and Oldham could be particularly badly impacted: here, rental yields are comparatively good but average house prices are below £125,000 meaning stamp duty will be imposed for the first time.
The Treasury’s decision to inflict this tax hike is part of their longer term plan to professionalise the Buy to Let market and make Britain a country of homeowners. While the mission has its merits, there are no quick fixes to the nationwide housing crisis. Until there are more houses on the streets that people can buy at reasonable prices, landlords have their place and their tenants must be protected.”
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