Phone Us

Landlords Continuing to Invest Despite Stamp Duty Surcharge

The number of UK landlords liable for the new stamp duty surcharge reached more than 60,000 in Q4 2016 – the highest since the new policy was introduced.

UK Landlords Continuing to Invest in Property Despite Stamp Duty Levy

The number of UK landlords liable for the new stamp duty surcharge reached more than 60,000 in Q4 2016 – the highest since the new policy was introduced.

Her Majesty’s Revenue and Customs (HMRC) has revealed that the number of properties that incurred the 3% stamp duty in the final quarter of last year totalled 62,800, a significant increase from the 56,200 seen in Q3 2016 and the 30,400 registered in Q2 of the same year.


HMRC said it had generated a total of £519m from the stamp duty surcharge in Q4, accounting for more than half of the £1.19bn that has been generated since the introduction of the charge in Q2 2016.


Introduced on April 1st 2016, the levy was announced by the government as a method to deter buy-to-let landlords, allowing first-time buyers greater access to available housing stock.


However, figures from the Council of Mortgage Lenders (CML) have also indicated that landlords are continuing to invest in the buy-to-let sector undeterred, with CML reporting that a total of £3.2bn was borrowed in November 2016 – a month-on-month increase of 10%.


This was the highest monthly level of borrowing seen in the UK since the introduction of the surcharge, said CML.


Commenting on HMRC’s publication of the latest quarterly stamp duty figures, the chairman of estate agent Jackson-Stops & Staff, Nick Leeming, said:


‘The data suggests that buy-to-let investors are not being deterred by the new tax which is supposed to be dampening demand from this group to the benefit of first time buyers … The better solution is a real concerted drive to build more homes, rather than targeting buy-to-let investors.’


Earlier this month, the government revealed their plans for the housing market in a new White Paper, with plans to invest in more Build-to-Rent property schemes and fund the construction of significantly more new homes at the top of the priorities list.

X
Cookies on our website:
This website uses cookies.
I'm OK with this Cookie Settings ?