The 3% surcharge on buy-to-let and second properties being introduced by the Government on April 1st 2016 has once again come under attack.
Foundation Home Loans, a buy-to-let lender based in Bracknell, believes that the 3% Stamp Duty Land Tax increase will lead to increased rental charges.
Simon Bayley, Commerical Director at Foundation Home Loans, noted the Chancellor’s intentions to put a move on buy-to-let activity will actually serve to do the opposite.
Bayley said, ‘the extra levy being introduced on Stamp Duty will in fact just become an unwelcome extra burden for tenants in many cases. At a time when more people are finding it difficult to become property owners, there is a sizeable number of people who rely on private rental to have flexibility on location for work opportunities, those with past credit problems or simply because they do not fit the boxes required for social housing. It is they who will be paying as the cost will ultimately filter down to tenants.’
Mr Bayley went on to say that, ‘the Chancellors move might have seemed like a way of curbing the market as well as adding to the tax take, but bringing in a levy, will really be felt by those who can least afford it. The BTL market remains a valuable contributor of private rental housing and using the levers of taxation in this way is ultimately counter productive.’