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The chancellor’s Autumn Statement was full of surprises this week, but the most notable was the announcement that the government is changing the way stamp duty is calculated.
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New Stamp Duty Rules
Under Mr Osborne’s new rules, stamp duty will be calculated using a graduated rate. Instead of sharp jumps up in tax at certain price levels, stamp duty will be calculated based on the part of the property that falls within a particular band. This means cheaper properties will incur less stamp duty tax and landlords will be able to buy cheaper family homes for less money.
“Investors may consider a greater variety of properties due to these changes. With more investors entering the market tenants will benefit from more choice of properties. As demand for small family homes is increasing – and this type of property would usually have incurred a high stamp duty cost for investors – these changes are likely to improve the availability of this type of property which will in turn allow some tenants to climb the rental property ladder,” said Claire Tobin from Leaders Letting & Estate Agents.
NLA Delighted with Stamp Duty Changes
Richard Lambert from the National Landlords Association was also delighted with the chancellor’s announcement:
“The NLA has argued for many years that a progressive system would offer a fairer and far less distorting means of taxing property purchases. The introduction of a straightforward marginal system of taxation will mean private landlords will now not only face lower costs when acquiring property, but also have funds to implement property improvements and keep rents down.”
