Comment on the Autumn Statement 2015
The Government is quite rightly shining a spotlight on housing and particularly new homes with additional funding of £2bn a year to increase affordable homes and enabling more people to get on the housing ladder.
However, raising Stamp Duty by 3% for second homes and private buy-to-let investment properties from next April will certainly impact on the market, particularly those homes in highest demand from tenants, namely two and three bedroom houses and flats which appeal to private investors who choose to invest their life savings, inheritances or pension funds in property.
There may be a short term rush of landlords keen to complete prior to April but I suspect many private investment buyers will be deterred from entering the market, although they are unlikely to benefit much from the banks' interest rates as an alternative. Those landlords taking a much longer term view will still probably decide to put their money in bricks and mortar, even if they do end up paying more initially than the owner occupier in the next apartment.
The changes are likely to be welcomed by existing landlords who could benefit from the decrease of new property to let becoming available to tenants at a time when demand for rental property remains strong.
