Buy-to-let landlords could face a Stamp Duty rate hike which means they have to pay an additional 3% of a property’s value in tax.
Treasury chiefs are reportedly planning the hike on extra levy for buy-to-let purchases in a fresh bid to ease the housing crisis.
The stamp duty premium, introduced two years ago by then Chancellor George Osbourne, was to curb the purchase of second homes as money makers.
It means buy-to-let purchasers have to pay an additional 3% of the property’s value in tax, on top of stamp duty.
Former trade secretory John Redwood, expressed his disagreement with the move. He stated: “There is no need to increase taxes and if you carry on increasing them you’ll collect less money from people, which is the opposite of what we want to achieve.”
“The answer for the Treasury is cut stamp duty and you’ll raise more money.”
The Treasury has refused to comment on the matter stating it as speculation.
With the growth in the rental sector and high yield hotspots across the North West, a rate hike has the potential to disrupt the BTL market, enforcing even more difficulties on those who opt to rent instead of home-own due to the difficulty with the latter.