Another blow for buy-to-let investors
THE Chancellor announced that those purchasing properties for buy-to-let or as holiday homes will have to pay a penalty – stamp duty at a rate that is 3% higher than a residential purchase.
It’s another blow for those who see buy-to-let as an alternative investment vehicle given the historically low levels of interest rates and it follows his announcement on mortgage interest relief in the July Budget.
George Osborne said: “More and more homes are being bought as buy-to-lets or second homes. Many of them are cash purchases that aren’t affected by the restrictions I introduced in the Budget on mortgage interest relief; and many of them are bought by those who aren’t resident in this country.
“Frankly, people buying a home to let should not be squeezing out families who can’t afford a home to buy.”
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The change will be introduced from April next year and the extra stamp duty will raise almost a billion pounds by 2021.
Osborne added that some of the money raised would be reinvested in local communities in London and “places like Cornwall” which he said are being priced out of home ownership.
