I’m sure there will be lots of intelligent reflection and analysis following the chancellors Autumn Statement and I need to give it some serious thought as well, but at the moment I’m a bit stunned and keep thinking ‘Why?’
I understand that he needs money elsewhere but really, another blow to investors and the private rental market?
When the news was first announced I had a call from a landlord who wanted to clarify that this would be just an extra 3% of the stamp duty already due i.e. a few hundred pounds. Erm,,,, no this is an extra 3% of the property price, so a good few thousand pounds (£5,520 extra on a £184,000 house).
Coming so soon after the budget and planned cuts to tax relief this makes buy to let much less attractive, particularly for small investors who lets face it, are generally not ‘raking it in’ but merely trying to supplement their income or make sure that in future they have a bit more than the state pension to exist on.
Professional, portfolio landlords will adapt and change and find ways to continue investing perhaps by setting up limited companies who would have better tax conditions and (if what I’ve read is correct) would not be hit by the extra stamp duty.
No doubt there will be an impact on tenants with reduced supply, higher rents and less spent on maintenance.
I need to look into this a bit further and think through all the implications but at the moment I see small investors and tenants being hit hardest and so I’m still thinking ‘Why?’
At Belvoir Lettings Enfield we don’t sell property, we simply use our experience to advise people as to what might make a good property investment in the Enfield, Haringey and Barnet areas, and how to successfully let their property.
