The government should aim to stimulate housing market activity and help boost the supply of new homes by scrapping the 3% stamp duty surcharge for people, including buy-to-let landlords, purchasing additional properties, new research shows.
According to analysis by Capital Economics, scrapping the stamp duty surcharge would boost housing market activity by encouraging investors to invest in properties and that would in turn help meet the growing demand for rental homes and drive up transaction levels.
The economic consultancy believes that removing the 3% levy would see almost 900,000 new private rented homes made available across the UK over the next ten years.
Mortgage interest relief changes, the scrapping of the ‘wear and tear’ allowance and the introduction of the 3% stamp duty surcharge have hit landlords’ profits over the past few of years, which partly explains why so many people are exiting the BTL market and thus reducing the supply of much needed private rented stock.
Read the full article on: Property Industry Eye | MARCH 15, 2022 | MARC DA SILVA
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