Surge in landlords trying to beat stamp duty changes

stamp duty changes

It has been reported that 44% of estate agents are reporting an increase in interest from landlords trying to beat the buy-to-let stamp duty changes set to come into force in April.

What are the stamp duty changes?

Back in his 2015 Autumn Statement, Chancellor George Osborne announced changes to the stamp duty applied to second homes and buy-to-let properties.

From April 2016, anyone buying a second or additional property will be charged an extra 3% stamp duty.

Band

Current stamp duty rate

Stamp duty rate from April 2016 on second or multiple properties

£0 – £125,000

0%

3%

£125,001 – £250,000

2%

5%

£250,001 – £925,000

5%

10%

£925,001 – £1,500,000

10%

13%

£1,500,000+

12%

15%

So, if you are a landlord or buy-to-let investor looking to buy a property at the UK’s average property price of £288,000, before April 2016 you would pay £4,400 in stamp duty land tax, but after April 2016 your stamp duty bill would jump to £13,800!

Why is George Osborne targeting landlords?

Once seen as an investment opportunity open to the masses, buy-to-let investment has become a controversial part of the property market, with many blaming buy-to-let investors for rising property prices which prevent first time buyers from being able to get a foot on the property ladder.

What other changes are being introduced?

Tax relief is the other major change set to impact the buy-to-let market. Currently, landlords can claim for interest on buy-to-let mortgage payments, allowing them to effectively offset mortgage interest against rental income. From April 2015, however, landlords will be subject to a gradual change in tax relief which will see them starting to be taxed on their turnover, rather than their profit. The changes will be fully implemented by 2020, and Property Partner claims that the tax relief changes, combined with inevitable eventual interest rate rises, could make buy-to-let property unprofitable in as many as 7 out of 10 towns and cities.

According to Property Partner, investors in Cambridge currently make an average annual profit of around £4,257. If interest rates rise by a predicted 2.5%, that £4,257 profit would quickly drop to a £2,418 annual loss!

What can landlords do about it?

Many landlords are expected to walk away from the buy-to-let market, leaving a shortage of rental properties, but those who stick it out have very limited options:

  1. Increase rents to cover the financial impact of the changes
  2. Accept the changes and hold on to the property in the hope of benefitting from capital gains
  3. Sell less-profitable property quickly and invest in more profitable options before the stamp duty changes come into force in April 2016 – if you decide this is the best option for you, Quick Move Now could buy any vacant buy-to-let property in as little as 7 days, with a quick, guaranteed cash purchase

Get an instant free estimate

We have £6,354,923 instantly available right now to buy your house

  • Property Details
    1
  • Contact Details
    2
  • Your Quote
    3
  • 1 Property Details
  • 2 Contact Details
  • 3 Your Quote

No risk free quote

  • Guaranteed sale
  • Become chain free
  • No fees
   Yes
No 
  • Please select yes to agree to our terms of data collection to proceed.

Terms of data collection

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Curabitur eget consequat lectus. Suspendisse vitae vestibulum mi. Suspendisse maximus mauris vel nunc sodales dapibus. Etiam ornare neque non purus ullamcorper, sit amet elementum libero laoreet. In quis sodales ex. Curabitur ultricies ex et leo euismod dapibus. Nam vel sem finibus, semper purus sed, vestibulum ligula. Interdum et malesuada fames ac ante ipsum primis in faucibus. Duis ut elementum quam, a cursus diam. Nunc urna felis, consectetur ut fringilla eleifend, blandit id odio. Sed mattis leo non metus suscipit tristique. Fusce lacinia erat ac dolor rhoncus blandit. Maecenas lobortis commodo libero, non semper nunc vestibulum eu. Morbi eu interdum libero. Fusce rhoncus faucibus est vel blandit. Donec eget erat vitae neque scelerisque aliquet id ac metus.

Donec non dui vitae elit feugiat rhoncus eget in elit. Mauris pharetra sem enim, gravida auctor dui aliquet a. Donec mollis dignissim risus eget pharetra. Nullam condimentum massa nulla. Etiam id sollicitudin libero. Nunc ligula ante, cursus eu euismod nec, congue eu neque. Nullam suscipit ante ipsum, nec vulputate justo semper eget. Pellentesque sit amet orci ac urna sollicitudin cursus sed vitae leo.

Curabitur lorem tortor, consequat nec elementum eu, convallis a velit. Ut ac consequat orci. Morbi id vestibulum leo. Praesent pellentesque efficitur quam eu scelerisque. Duis pulvinar molestie maximus. Phasellus a mattis enim. Vestibulum ullamcorper, odio vel lacinia mattis, dui orci volutpat massa, sit amet ornare felis ipsum at ligula. Duis pretium in nisi id hendrerit. Nunc ornare nunc et dolor vehicula, sit amet congue nisl viverra.

Back to property details

Your free, no obligation estimate request has been successfully submitted.


One of our property experts will be in touch shortly to discuss your requirements in more detail.


Call us on

0800 068 3366

or we will call you

Why sell with us


  • We do exactly what we say

    We buy property, for cash, quickly. If you need a quick, certain and hassle free sale, we can buy. We
    will buy at a discount to market value, but we are upfront about this discount from the outset, and
    there is never any cost to you.


  • Cash available immediately – 24 hour guarantee

    All purchases are 100% cash – we do not need to obtain mortgage finance or find an investor. We have
    substantial cash reserves available and a turnover of £42 million, so there will be no delays. We
    guarantee to have the cash to buy your home available to solicitors within 24 hours. Quick Move Now
    is the only company to offer this assurance.


  • No contracts until completion

    We do not hook your business in on a contract, you are not tied to anything until we complete on the
    property sale. Therefore you are under no obligation up until this point to use us – we are
    confident enough to offer this as we know we have the service quality to help you with your propert
    sale with no hassle.


  • You set the timescale

    Our service is designed to meet your immediate requirements. You set the completion date, from as
    little as seven days to as long as eight weeks, and we ensure it is met with the minimum of
    hassle.


  • Our business is totally transparent

    Our company details are freely available online and in all literature. We provide detailed evidence
    of our history, track record and post detailed company accounts on our website. We understand that
    selling your home can be a stressful and unfamiliar process so we try and make things as seamless as
    possible.


  • We’re here seven days a week

    We try to be here when you need to speak to us. Our office is open Monday to Friday 9am to 8pm and
    Saturday to Sunday 10am to 3pm. Outside of these hours you can leave a message with our friendly
    call handling service and one of the team will contact you the following day.

This content was written by Quick Move Now
Published on 29th February 2016
Last updated on 22nd May 2019

WE ARE MONITORED BY

Property Ombudsman Logo National Association Property Buyers Logo Chartered Trading Standards Institute Logo British Property Federation Logo

Address

Quick Move Now
Interface Business Park,
Floor One, Unit 15,
Royal Wootton Bassett,
Swindon
SN4 8SY

Get your cash offer now

CASH COULD BE IN YOUR ACCOUNT IN
9 Days
|
7 Hours
|
47 Minutes

You're currently offline