It was announced in the Autumn Statement that a higher rate of stamp duty will be charged on purchases of buy to let properties and second homes, from 1 April 2016.  Though subject to consultation, the only major exemptions that are currently being considered are corporate or funds with more than 15 properties.

The higher rates will be 3 percentage points above the current SDLT rates.

So for example:

Harrow Times:

Lucian Cook, Savills UK head of residential research, comments on the announcement of an additional 3% stamp duty charge for buy to let and second home buyers:

“While the additional stamp duty charges for buy to let investors and second home owners announced in the Autumn Statement are unlikely to have a significant impact on the outlook for the UK housing market as a whole, there will be a number of sub-sectors where the impact is most felt.

“The prime London housing market has already been weighed down by the stamp duty changes introduced in last year’s Autumn Statement.  However, evidence to date suggests that the stamp duty take from this part of the market has risen slightly.

“The likelihood is that this will further suppress transactions and prices in the prime central London market, given the extent to which this market has been supported by purchases from second home

owners and investor buyers, meaning the ability for this additional levy to generate greater revenue from these buyer groups is less assured.

“More generally, buy to let investors are likely to display greater caution faced with higher transaction costs. This is likely to be greatest among those with substantial debt who are also affected by the changes to tax relief that were announced in the July budget.

“These buyers have historically been particularly attracted to new build housing.  That means once the changes are introduced house builders will be less able to rely on this type of buyer and will have to focus more on demand for the shared ownership, starter homes and help to buy product that is supported by other Government policy.

“However in the short term, there is little doubt that some buy to let investors will bring forward their planned purchases to beat the April 2016 deadline and including those looking to extract cash from their pensions.”