The decision by George Osborne in 2015 to introduce a 3% additional stamp duty levy on landlords has seen a slump in the number of BTL properties bought in the Tory heartlands of Southern England, it has been claimed.

Paragon Bank's analysis of industry data has revealed that 35% of properties purchased with a buy-to-let mortgage during 2023 were in the South East, Greater London and the South West.

This was down from 39% in 2022 and has fallen from a high of 52% in 2015, the year before the Stamp Duty surcharge was introduced.

Since 2015, the proportion of stock purchased in Southern regions has fallen each year, aside from 2020 and 2021 when the Stamp Duty Holiday was introduced during the Covid pandemic.

Also, the proportion of mortgaged buy-to-let homes purchased in London fell from 19% of the UK total in 2015 to 12% last year. And in the South East it dropped from 24% to 17% over the same period, while the South West fell from 9% to 6%.

Disproportionate

“The introduction of the Stamp Duty surcharge disproportionately impacted those markets with above average house prices in the south of England,” says Richard Rowntree, MD of Paragon Bank.

“Over the long-term, it’s clear that we will need more rental homes and a vibrant private rented sector across the UK. With the population forecast to increase by 9.9% - or by 6.6 million people – by 2036, demand for rental property is only going to be stronger.

Earlier this year the NRLA called or the Government to scrap the surcharge, arguing that the uplift in the private rented sector would generate an additional £10 billion in revenue for the Government. Last year the additional 3% levied on landlords and second home buyers raised £2.6 million for the Chancellor

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