Property auctioneers fear stamp duty hike will squeeze PRS

Property auctioneers fear stamp duty hike will squeeze PRS

0:04 AM, 8th November 2024, About 4 weeks ago

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Auctioneers believe that last week’s Budget move to increase the higher rate for Additional Dwellings from 3% to 5% will discourage investment in the private rented sector (PRS).

NAVA Propertymark, Propertymark’s auctioneering arm, says the increase will reduce supply and potentially lead to higher rents for tenants.

The organisation is calling for a review of the SDLT surcharge on second homes and buy to let properties, arguing that it hinders potential rental property investors.

The higher rate will also exacerbate the housing supply shortage.

Instead, it is advocating for targeted tax relief to mitigate this impact.

SDLT on second homes and rental properties

NAVA Propertymark’s president, Stuart Collar-Brown, said: “There is little doubt that this will have an impact on investors and likely lead to them exiting the market, perhaps quicker than they had intended to with less homes to rent leading to increases in rents across the board.”

He added: “Much of the pre-Budget chatter was surrounding capital gains tax increases but fortunately the rates for residential properties have remained unchanged at 18% (basic) and 24% (higher rate).

“This will be a relief for investors but those with non-residential assets in their portfolios will see an impact to their long-term gains with these rates increasing to be aligned with residential properties.”


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