Stamp Duty Levy hurting and not working for anyone
Over two thirds of landlords are reluctant to invest in new properties as a result of the Government’s stamp duty levy on additional properties according to our latest research.
The figures come amidst a fall in the number of mortgages provided to first time home owners.
The initial findings of a survey of over 3,000 landlords carried out by the Residential Landlord Associations’ (RLA) Private renting Evidence, Analysis and Research Lab (PEARL) finds that 68 per cent were being put off purchasing any additional homes to rent as a result of the 3 per cent stamp duty levy on such purchases introduced in April last year.
The measure was introduced by the George Osborne as Chancellor in an effort to support first time buyers into home ownership. However, figures from UK Finance show that between August and September 2017 there was a 10 per cent fall in the number of mortgages provided to first time buyers. In the year to September 2017 the figure fell by one per cent. The Royal Institution for Chartered Surveyors has reported that a further 20 per cent of respondents to its latest survey reported a fall in new buyer enquiries in October.
House transactions in September are also down by 17% on the previous year, and 28% on the past 2 years. Housing transactions have not yet recovered to the previous 2008 levels either.
With demand for private rented housing likely only to increase, the RLA is calling on the Chancellor to use the budget to scrap the stamp duty levy.
RLA Policy Director, David Smith, said:
“The previous Chancellor introduced the stamp duty levy to support first time buyers, yet the figures show this simply is not happening.
“Many of those looking for a place to live are facing a perfect storm – good landlords not prepared to invest in new homes to rent, whilst those same people are unable to access home ownership sectors.
“It is clear that the stamp duty levy is hurting but not working for anyone. It is time to scrap it.”