The Chancellor George Osborne gave the housing industry plenty of good news yesterday in his Autumn Statement. At the same time, though, he triggered a stampede by landlords rushing to avoid the new 3% increase in Stamp Duty for buy-to-let properties and second homes.
The positive news for the housing market was the announcement that the Government’s housing budget would be doubled to £2 billion to build more homes. The Chancellor made a commitment to building 400,000 new homes by 2020.
However, potential landlords will be hit by the announcement that Stamp Duty will rise by 3% for buy-to-let properties and second homes. This increase will take effect from 1st April 2016. Analysts at The Daily Telegraph have estimated that this, together with the changes made earlier in the year to mortgage tax relief, could result in the tax liable on a buy-to-let property costing £250,000 rising from £2,500 to £8,800.
The message for potential landlords is clear – if you want to invest in buy-to-let then now is the time to buy, before the increases kick in.
If you are thinking of buying a second property or buy-to-let investment in the Gloucester area, contact long-established local estate agents Farr & Farr on 01452 500025 or explore our website farrandfarr.co.uk. We will be happy to give you the benefit of our experience in the local property market to enable you to make the right investment decisions.