Rise In Buy-To-Let Stamp Duty 'Could Restrict Supply Of New Homes'

The chancellor’s plan to increase stamp duty for buy-to-let investors could lead to new housing developments stalling and rents increasing for tenants of private rented accommodation. On a £250,000 property buy-to-let investors will pay £10,000 of stamp duty, rather than £2,500. The move is designed to raise £3.8bn in tax and help potential first-time buyers afford a home by squeezing demand from buy-to-let investors. However, critics claim it could have the opposite effect by increasing rents and removing a key source of funding for new housing developments. Rents could rise due to a fall in the supply of rented accommodation and landlords raising their charges, while the supply of homes to buy could fall as investors who fund new developments are put off by the tax hike. Read more on the Guardian website.