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Stamp duty surcharge revenue almost doubled in Q3

The number of second homes liable to pay stamp duty increased to 62,800 in Q4 2016, up from 56,200 in Q3 and 30,400 in Q2, according to non-seasonally adjusted figures from HMRC.

Data shows that the Government made £519m from the 3 per cent surcharge on second homes introduced in Q4 2016 – and £1,190m since the second quarter of 2016.

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The charge applies to BTL investors as well as those purchasing second homes for holiday purposes or to pass on to family members.

Chairman of estate agents Jackson-Stops and Staff, Nick Leeming, says the stamp duty revenue is a “significant windfall for Treasury coffers.”

“Between Q2 and Q3 the number of second homes liable for the 3 per cent surcharge nearly doubled,” says Leeming.

“This increase is understandable as many buy-to-let investors would likely have rushed to make purchases before 1 April, but the number of liable second home transactions is up again in Q4 to 62,800.

“The data suggests that buy-to-let investors are not being deterred by the new tax which is supposed to be dampening demand from this group to the benefit of first-time buyers.

“We will see the true impact of this policy in time, but my fear is that additional costs will be passed on to tenants. The better solution is a real concerted drive to build more homes, rather than targeting buy-to-let investors – I hope the upcoming Housing White Paper contains a real blueprint for change in this regard.”

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