Richard James Estate Agents Blog

Despite pleas and pressure from the residential property industry, the Stamp Duty surcharge that the Chancellor announced in December 2015 will definitely go ahead on 1st April 2016.

All second home purchases or buy-to-let property purchases will be subject to a 3% surcharge on top of the standard Stamp Duty.

The original announcement in December created a frenzy and scramble from Buy-To- Let buyers to find and purchase a second home before the surcharge is applied. Under current legislation the Stamp Duty on a £200,000 second home purchase is £1,500 and from 1st April £7,500. The influx of buyers from December to the end of February has led to a shortage of available property stock and consequently an increase in prices.

The property industry now waits for the fall out; will rents be increased to fund the surcharge, will prices re-adjust once more stock comes back to the market or will some landlords opt to sell up and leave the rental market, particularly with higher taxes for landlords being imposed next year.

The Chancellor has said the additional receipts from this will help to fund people getting onto the property ladder in the South West.