In today’s budget, the Chancellor, George Osborne, has announced a number of measures which will impact the property industry.
The Chancellor confirmed that 3% stamp duty surcharge on the purchase of second homes and buy-to-let properties will go ahead from April 1.
He also announced that larger investors will not be exempt from the stamp duty changes – meaning all purchasers of buy-to-let properties will pay the additional tax.
The funds generated, he says, will fund local housing schemes. In particular, £20 million will be put towards helping young families in the South West on to the housing ladder via community land trusts.
This will affect the UK’s fledgling Build to Rent industry, which encourages institutional investment in the Private Rented Sector (PRS).
‘Micro entrepreneurs’ will also be handed a £1,000 a year tax break, presumably benefitting people who let properties through short-term lets sites like AirBnb – although full details of this are yet to emerge.