The Chancellor George Osborne gave the housing industry plenty of good news recently in his Autumn Statement. At the same time, though, he announced a 3% increase in Stamp Duty for buy-to-let properties and second homes, which analysts fear could lead to price hikes and resultant rent increases.

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 fear for tenants is that landlords will look to recoup their losses by increasing rents.

The message seems to be the same for potential landlords and tenants – move quickly to avoid any increases.
If you are a landlord considering letting a property or a tenant looking for a new home why not give me, Eddie Carter, a call on01684 292154 to discuss your requirements. Alternatively take a look around our website. We specialise in the Tewkesbury, Cheltenham, Evesham, Gloucester, Malvern and Worcester areas.

If you are a landlord considering letting a property or a tenant looking for a new home why not give me, Eddie Carter, a call on 01684 292154 to discuss your requirements. Alternatively take a look around our website.

Charles Carter Lettings
Independent – Specialist – Local