SDLT changes will see supply 'nosedive'

SDLT changes will see supply 'nosedive'

The Association of Residential Letting Agents (ARLA) has slammed the government over the stamp duty land tax (SDLT) which is set to come into force on Friday.

The changes will see a 3% increase for buyers purchasing a second home or buy-to-let (BTL) property.

Chancellor of the Exchequer George Osborne also announced in the Budget that there would not be an exemption for ‘significant investors’, after it was suggested that those with a portfolio of 15 properties or more could be excluded.

David Cox, Managing Director at ARLA, said the changes will see supply “nosedive” and demand “skyrocket”.

David said: “The introduction of the new stamp duty charges as of Monday is set to push the private rental sector into a state of despair.

“Back in November, when the Chancellor announced an increase in stamp duty tax on buy-to-let properties, we called this a huge kick in the teeth for the private rented sector.

“The news that larger investors will also have to pay the tax comes as an even bigger blow.

“In order for landlords to be able to afford to own a BTL property, tenants will begin to see the additional costs passed onto them, which means they could see less money spent on maintaining their property, and also an increase in rent costs.”

David also criticised the Bank of England for moving to tighten criteria for BTL lending.

He added: “The PRA’s (Prudential Regulation Authority) move yesterday to introduce stricter affordability measures for BTL investors is frankly disappointing.

“Whilst we recognise the need to look at the important issue of affordability, the proposed measures are far too tough and are yet another assault on the rental market.

“Something urgently needs to be done to make the prospect of being a BTL landlord appealing again, or the vicious cycle of supply and demand is only going to get worse and worse.” 

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