Landlords push for stamp duty surcharge u-turn to help solve housing crisis
Buy to let landlords in Wales are calling on the government to help kick start the Welsh housing market by amending or abolishing the 3% stamp duty surcharge currently imposed on residential properties and second homes.
Nine months on since the stamp duty changes on second properties and buy-to-let continues to operate at lower levels than a year ago, which reflects the fact that the rise in second home stamp duty has noticeably deterred investment in the private rented sector.
Virtually all buy-to-let investors would like to see the 3% stamp duty surcharge on second homes abolished, and now landlords in Wales see the introduction of the new Welsh Land Transaction Tax (LTT) – which replaces stamp duty in 2018 – as an opportunity to remove the levy where a landlord is adding to the housing supply.
Last summer the Society of Licensed Conveyancers (SLC) also called on the Government to scrap Stamp Duty, to create a more “buoyant and vibrant” property market across the board.
The SLC believe that scrapping Stamp Duty would not only create a more stable and lively property market, but would also lead to a “marked hike in investment and building of new homes” along with creating a “much more straightforward and quicker home buying and selling process”.
As well as the 3% stamp duty rise, landlords are also being left with no alternative but to pass extra costs onto their tenants due to the likes of Right to Rent legislation, a proposed lettings fee ban in England & Wales, more landlord licensing and tax changes due to commence from this April.
This is why almost 1m landlords plan to ditch their agents to save money from this April, and more and more start to realise the importance of the ‘Referencing Passport’, Rent Guarantee & Legal Expenses Insurance and The Ark.