Landlords will face an additional average charge of more than £7,000 from tomorrow when buying a property thanks to an uplift in Stamp Duty charges.

Following Chancellor Rachel Reeves’ announcement that the higher rate for additional properties would rise to 5%, there are fears that the increase could further narrow the available rental market, leading to upward pressure on rents.

Propertymark has previously called for the 3% SDLT surcharge on second homes and BTL homes to be revised as it deters likely rental property investors.

In her Budget, Reeves included an extension to the inheritance tax threshold until 2030, resulting in the first £325,000 of any estate being inherited tax-free. Propertymark argues that inheritance tax thresholds, which have not changed since 2009, no longer align with inflation and property price increases, resulting in more property owners paying the tax.

The group was also disappointed that the Budget didn’t contain measures to restore mortgage tax relief, or grants and loans to help landlords meet Minimum Energy Efficiency Standards.

CEO Nathan Emerson (main image) says: “Whilst it is understandable that the UK government needs to find more revenue, the increase in the Stamp Duty surcharge for second homes will not help increase demand for rented property at a time where homes are desperately needed to compete with ever-growing demand from tenants.”

£7,000

Rightmove explains that increasing Stamp Duty on additional home purchases by 2% means that, based on the average asking price for a home of £371,958, a landlord could face an additional charge of more than £7,000.

“In the short-term, some landlords may need to pause for thought, but in the longer-term it becomes yet another charge that landlords wanting to invest in buy-to-let will have to become accustomed to and factor into their decision making,” says Tim Bannister, Rightmove’s property expert. “Overall, we need more homes in the rented sector not fewer, but in recent times we have seen record levels of stock leaving the rental market.”

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