Spending Review 2015 – 3% increase on Stamp Duty for BTL and second homes

Spending Review 2015 – 3% increase on Stamp Duty for BTL and second homes

14:30 PM, 25th November 2015, About 8 years ago 224

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GeorgeThe Chancellor George Osborne in his spending review today announced that he will increase Stamp duty for Buy to Let properties and second homes with a surcharge of 3% from April 2016.

The Chancellor said he wanted to change from generation rent to generation buy. He was concerned that Cash Purchasers and foreign investors, who were not affected by the relief cap of 20% on  mortgage interest, along with Buy to Let investors were squeezing out home buyers. Therefore there will be an increase of 3% in stamp duty for non-main residence purchasers, which would also raise an additional £1bn in tax.

The Housing budget will now be doubled to £2bn per annum and a project to build 400,000 new affordable homes to buy will be started. Osborne said “this government chooses to build.”

These affordable homes will be offered to First Time Buyers at a discount of 20%, and 135,000 new homes will be offered under Help to Buy shared ownership.

A London Help to Buy scheme will offer interest-free loans up to a maximum of 40% of the value of a newly built home.

Restrictions on shared ownership will be removed and the planning system reformed to deliver more homes.

Councils will also receive an additional £10m to help homeless people.

It is the Chancellors clear policy to help solve the housing crises by building more homes and squeezing the competitiveness of the Private Rental Sector thus shifting the balance from renting to home ownership.


Commercial property investors, with more than 15 properties, are expected to be exempt from the new charges.

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Neil Patterson

14:40 PM, 25th November 2015, About 8 years ago

Reaction from the NLA:


Commenting on the Chancellor’s announcement on increased stamp duty land tax (SDLT) on buy to let property purchases, Richard Lambert, CEO at the National Landlords Association, said:

“The Chancellor’s political intention is crystal clear; he wants to choke off future investment in private properties to rent.

“The exemption for corporate investment makes this effectively an attack on the small private landlords who responded to the housing crisis by putting their own money into providing homes by the party that they put their faith in at the election.

“If it’s the Chancellor’s intention to completely eradicate buy to let in the UK then it’s a mystery to us why he doesn’t just come out and say so”.

Neil Patterson

14:42 PM, 25th November 2015, About 8 years ago

More reaction:

Genevieve Moore, tax partner, at London Chartered Accountants Blick Rothenberg LLP said: “The Chancellor continues to raid the pockets of buy-to-let owners, now with an increase in Stamp Duty Land Tax (“SDLT”) on acquisition. Whether the additional costs of acquisition will be passed on to future tenants in an attempt to achieve the targeted return on investment remains to be seen.”

Frank Nash, partner, at Blick Rothenberg LLP said: “It is going to be challenging to police the SLDT surcharge for second homes – a purchaser could easily declare the new home as their main residence immediately.”

Robert Pullen, tax manager, at Blick Rothenberg LLP said: “Buy-to-Let purchases from April 2016 will suffer an additional 3% SDLT. This is likely to cause initial spike in house prices as investors rush to buy, but the long term impacts are not known. It could result in even larger rent costs as landlords seek to recover the new tax.”

denis knockton

14:44 PM, 25th November 2015, About 8 years ago

Does this new surcharge also apply to SPVs and Ltd. cos.?

Luke P

14:44 PM, 25th November 2015, About 8 years ago

Is this on ALL BTL purchase amounts or with the existing threashold (£125k currently, I believe)?

Neil Patterson

14:48 PM, 25th November 2015, About 8 years ago

There have not been any in-depth details or information released that I have seen yet.

From the Chancellor "It will be introduced from April next year and we’ll consult on the details so that corporate property development isn’t affected."

Sam Roberts

14:53 PM, 25th November 2015, About 8 years ago

I have big aspirations of becoming a BTL investor on a large scale. Is this the end or is there still a chance of creating big portfolios in the UK or is it just not worth it?


money manager

14:54 PM, 25th November 2015, About 8 years ago

Councils will need that extra £10m. My market is likely to be capable of bearing the additonal SDLT charge along with the finance cost restrictions. It is quite clear though that both of these moves are little more than a disingenuous slight of hand.

Dr Rosalind Beck

14:57 PM, 25th November 2015, About 8 years ago

Regarding affordable homes, any workers who work from home should come and live in the South Wales valleys - they can get an affordable home there for £50,000. Where I come from, £250,000 homes are not 'affordable.' It is also my understanding that the developer bumps up the price anyway as they know the buyer will be getting this Help to Buy. It's a bit like grants for home improvements - 20 years ago when I bought my first home I was offered a 50% grant for home improvements, but had to use the recommended contractors. Their price was £20,000 and there was a waiting list of a few years. Instead, I found my own contractor who would do the work for £10,000. These schemes are a racket as far as I can see.

Kathleen Gell

15:11 PM, 25th November 2015, About 8 years ago

Thankfully this will not apply in Scotland- we now have Land Buildings and Transaction Tax ( LBTT) with differing rates and thresholds. However, where one goes, it is likely others will follow......


15:25 PM, 25th November 2015, About 8 years ago

10m to councils for the homeless so is he saying he knows the homeless will increase due to his changes. It wont go far and what will it actually be used on Bed and breakfast leasing etc...

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