The Chancellor has announced today an increase in Stamp Duty on buy to let properties and second homes. There will be a 3% increase on each rate band from April 2016. This means that a buy to let purchase between £125,000 and £250,000 will now attract stamp duty of 5% rather than the existing 2% rate.
There is concern that house prices are being driven up by the influx of buy to let investors into the housing market and this would appear to be an attempt to deal with this problem.
Interestingly, there is an exemption for commercial investors who own in excess of 15 properties confirming that this move is aimed at so called 'amateur landlords' who have invested funds in property rather than perhaps a pension fund.
He will raise an extra £1bn a year by 2020 from a new 3% stamp duty charge on buy-to-let properties and second homes, amid growing concerns that buy-to-let landlords are driving up property prices and crowding out local buyers.