You are here: Home - News -

Buy-to-let stamp duty rises by nearly £12,000 since government change

  • 09/06/2022
  • 0
Buy-to-let stamp duty rises by nearly £12,000 since government change
The average stamp duty payment for buy-to-let homes has increased to £13,801, which is up from £1,953 before legislative changes in 2016.

According to research from Revolution Brokers, this is nearly triple the average stamp duty paid by a regular homebuyer, which was pegged at £4,876.

In 2016 the government raised the stamp duty rate on the purchase of additional residential properties, which included second homes and buy-to-let properties by three per cent across all price thresholds.

The report continued that regionally the gap between average buy-to-let stamp duty and that for homeowners was significant in the UK.

It said that the difference was most acute in the North East as average buy-to-let stamp duty was 777 per cent higher than stamp duty for buying a primary residence.

This was followed by the Yorkshire and Humber region which had a 401 per cent gap and the North West at 384 per cent.

In Northern Ireland, average buy-to-let stamp duty is 624 per cent higher than that paid for initial house purchase. For Wales the difference is 894 per cent and Scotland the gap is 997 per cent.

Almas Uddin, founding director of Revolution Brokers, said: “When the stamp duty rules were changed in 2016, it was a clear move by the government to try and deter landlords from snapping up property that could, in theory, otherwise be bought by a regular or first-time buyer.

“But despite buy-to-let properties now commanding a hefty stamp duty premium regardless of where you’re looking to purchase, there is still a healthy appetite for investment within the sector and it remains a vital cog in the UK housing market, providing rental homes for the millions who require them.”

There are 0 Comment(s)

You may also be interested in