Home News Buy To Let Stamp Duty Exemption

Buy To Let Stamp Duty Exemption

5th November 2022 Rooms For Let

Demands to Scrap Stamp Duty Surcharge for Landlords

The government has been urged on many occasions to scrap the stamp duty surcharge for landlords currently standing at 3%.

During 2022 we have seen a large fall in the number of available rental properties compared to previous years and more people looking per property than ever before. This has meant rent prices have increased substantially over recent months.

The fall in the number of properties available for rent is due to a number of reasons. Section 24 was introduced in an attempt to slow the growth of the private rental market and reduce rents for tenants. However, it seems to have had the opposite effect with many landlords deeming it not financially viable and selling up or reducing their portfolio. This has increased demand with more people looking for a reduced number of properties.

In the second half of 2022 we have seen a number of economic changes which have adversely affected the market. Interest rates have increased month on month, mortgage products have been removed from the market and costs for both landlords and home owners have increased substantially. Increased mortgage rates for landlords and the likelihood of a large fall in house prices again make buy-to-let less viable meaning less are entering the market or selling, resulting in a further reduction in available stock. Furthermore, 1st time buyers who were looking at purchasing have seen their preferred mortgage choice removed, increased monthly payments and a reluctance to purchase at the top of the market. Whilst this is likely to see a fall in house prices over the coming months it, exacerbates the issues. New buyers not making that vital purchase would then be looking to rent in an ever tightening market.

How Can Government Help?

As the supply of available rental properties shrinks, the demand and rents increase. Scrapping the Stamp Duty Surcharge can go some way to alleviate this problem and offer an incentive for landlords to return to the market. Whilst there is a common misconception that all landlords are wealthy, this isn't the case for a large proportion who own a single property and rely on that income month to month. Changes to Stamp Duty rules and possible revision or even repeal of Section 24 reducing the tax burden on landlords can go some way to boosting a deflated market and easing what is becoming a major crisis in the private rental sector.

We look forward to the Chancellors Autumn Statement on November 17th with baited breath.

Register Now as a Landlord


Register as a Landlord

With the current situation in the Rental market and the lack of available accommodation, demand is extreme. We are always looking to increase the number of landlords registered with us.

Most accommodation we offer on RoomsForLet are rooms in shared houses, HMO's or rooms in an owners own property. If you are a Home owner looking to earn extra, regular monthly income, renting out a furnished bedroom in your own home is an option. Furthermore you would be exempt from any tax on all rent up £7,500.00 per year under the Rent A Room scheme.

If you are a home owner looking to let out a room in your own house or a Landlord with buy to let, HMO or other properties, please register as a landlord to begin advertising.

Register Now as a Landlord
We have updated our Cookie Policy and our Privacy policy. Cookies are used to ensure we provide the best customer experience. Continued use of this website assumes your acceptance of these policies.