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The Residential Landlords Association is calling for the government to scrap the 3% stamp duty land tax on second and subsequent homes. It says the 3% SDLT should not apply to properties that add to the overall housing stock.
When Does 3% Stamp Duty Land Tax Apply?
The 3% SDLT kicks in when a landlord invests in a property to let. It includes all second and subsequent properties, including empty shop and office conversions, and also if a landlord converts a larger property into smaller dwellings.
David Smith, policy director at the RLA says the government is making a huge mistake putting homes to rent and buy in direct opposition to each other. He says the policy should be directed more at supplying more homes across the board.
“The vast majority of landlords are individuals and small businesses, providing good housing to their tenants and supporting local economies. We need to support and encourage them to provide the long-term homes to rent needed. The Government should use taxation more positively and not penalise landlords who are contributing to badly needed homes to rent.”
Net Loss of Rental homes because of SDLT
The RLA’s research exchange, PEARL, says there will be a net loss of 133k properties in the private rental sector in the next year. This is despite research conducted on 2,600 landlords that shows tenant demand is stable or increasing in 84% of cases.
Landlords are pulling out of the private rental sector because it’s no longer economically viable due to the loss of mortgage interest tax relief and the 3% SDLT levy.
