Philip Jordan, Chief Executive of Henry Adams, comments on The Budget
Confirmation in today’s Budget that the surcharge of 3% Stamp Duty Land Tax on second homes and investment properties will indeed come into force from the start of April was disappointing but not entirely unexpected.
The impact in the market over coming months remains to be seen but the continued squeeze on the private rented sector by the government means private landlords who are planning to add to or who are starting their portfolio really have to take a longer term view to their investment, which is possibly the Chancellor’s intention. It could also enable first time buyers a window of opportunity with fewer investors in the market to compete against when buying starter homes.
A more level playing field for landlords will be created now that large scale investors will also subject to the Stamp Duty surcharge, although that is less likely to impact the outer regional markets less than the Build to Rent sector emerging in more urban locations including, of course, London.
Interestingly the Chancellor has also announced reforms to Stamp Duty on commercial property which come into effect at midnight tonight. The changes, which include seeing commercial freehold properties under £150,000 attract zero rate, should benefit smaller businesses which should in turn help to breathe life back into some of our local high streets and that has got to be good news for shopkeepers and communities.