Chancellor George Osborne has announced a raft of measures to help people onto the housing ladder, including increased stamp duty rates for those buying a property for buy-to-let.
Giving his Autumn Statement today, the Chancellor said he will introduce a new 3 percentage point stamp duty surcharge on buy-to-let properties. It will be introduced in April next year.
Money raised from tax on people buying their second home will be used to help those struggling to buy their first home.
He said: “Frankly, people buying a home to let should not be squeezing out families who cannot afford a home to buy.”
Osborne also announced a new Help to Buy scheme for Londoners which provides those with a 5 per cent deposit an interest-free loan of up to 40 per cent of the value of a newly-built home.
He also announced a Help to Buy: Shared Ownership to help people get on the housing ladder. It will lift the limits so that anyone who has a household income of less than £80,000 outside London, and £90,000 inside London, can buy a home through shared ownership. Only military personnel will be given be priority over other groups. The scheme will apply across England.
The Chancellor also pledged to double the Housing Office’s budget to £2bn and to introduce further planning reforms.
Osborne has previously announced plans to build 200,000 starter homes for first-time buyers at a 20 per cent discount.
The Chancellor has previously announced plans to extend the Right to Buy scheme to housing association tenants. He confirmed today that from midnight five housing associations would start this process.