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Landlords are calling upon the Welsh government to amend or scrap the second property stamp duty tax payable by landlords when they purchase an investment property to let out. They say the punitive tax is stalling recovery of the Welsh buy to let market, as landlords think twice about investing in private rental homes.
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No landlords are terribly happy about the introduction of a second property tax, but Welsh landlords are in a better position, as there is an opportunity to have the 3% surcharge abolished.
LTT to Replace Stamp Duty in Wales
The Welsh Land Transaction Tax (LTT) is set to replace stamp duty in 2018. Landlords and campaigners are hoping that the Welsh government will consider removing the stamp duty levy on the basis that landlords are adding essential housing stock into the central pool. The Residential Landlords Association says the stamp duty tax is deterring investment and housing stocks will be limited in future years, which could force rents to rise to unaffordable levels.
RLA Critical of Stamp Duty
“The government has rightly made boosting the supply of housing, including homes to rent, a priority,” says Douglas Haig from the RLA. “Whilst we believe the planned levy on homes to rent out will most hurt vulnerable tenants needing a place to live, the assembly has an opportunity to make constructive changes to the bill to rectify this and back the nation’s tenants.”
However, the Welsh government is adamant that money raised through charging stamp duty tax on second and subsequent properties helps to pay for essential public services.
