Stamp duty bills will almost double from £8,452 to £16,190 in April, an increase likely to spark higher rental costs as landlords attempt to recoup costs.
Research from property giant JLL reveals that the threat emerged after Chancellor Rachel Reeves (main image) confirmed plans to undo tax breaks brought in by the Conservatives and increase stamp duty on second homeowners from 3% to 5%, The Telegraph reports.
Based on the average price of a buy-to-let home across Britain, using ONS, Zoopla and Rightmove data, JLL explains that inflated stamp duty will amount to the equivalent of 11 months’ rent, compared to seven months before the October Budget, and is expected to rise to 13 months’ rent from April.
Duty to raise
Following Reeves’s decision to raise the duty, head of the Institute for Fiscal Studies, Paul Johnson, said it would “make things even more immobile and increase rents even further” and named it, “the most damaging tax we have”.
The prospect of rising stamp duty bills has already prompted an increase in landlords exiting the market, as Rightmove data revealed a 6% rise in new sellers in November.
As well as existing property investors selling up, JLL warns that higher taxes are also likely to deter new landlords from entering the market.
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