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Osborne to increase B2L stamp duty rates in raft of new measures

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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.

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  • Tom Cleary 26th November 2015 at 1:29 pm

    Or it might actually help FTB’s by removing their competition to buy their first home? I see FTB’s everyday being outbid by BTL investors. It can only be good news for them…

  • Nigel Allen 25th November 2015 at 2:26 pm

    When are the government going to realise that if people could afford to buy a home they would be doing it now without the BTL market impacting.
    Now the landlords will consider twice before buying, thus creating a shortage of rental accommodation. Where will everyone live? council houses? oh no , there is a shortage of them as well!!
    Not everyone wants to buy a new build, ( developers will increase the asking prices anyway)
    where are the incentives to help first time buyers/ second time buyers purchase a 2nd hand property?This looks to me that it will slow the housing market down and reduce the income currently coming in via stamp duty as 1% etc is better than 0% when the landlords stop buying!

  • Chris Hulme 25th November 2015 at 2:21 pm

    Interesting one George. How will this work for cash buyers that buy a home as a main residence for a few weeks and then let it out at a later date? Possibly then taking a consumer BTL remortgage further down the line…

    All you will do is hinder the landlord that needs a mortgage to purchase a BTL in the first place…. or you will push the back door BTL market even further into the realms.

    Whilst the competitive edge remains with landlords and BTL, I suspect you’re playing a very dangerous game with the housing and mortgage markets with this and other recent measures.

  • Simon Cozzolino 25th November 2015 at 2:03 pm

    “Frankly, people buying a home to let should not be squeezing out families who cannot afford a home to buy.”
    In the short term, if people can’t afford to buy, they couldn’t have bought the house anyway- and need somewhere to rent. Try again Osborne.