Read more articles in: Becky Cutting, Blog, News

I’m buying a property – How will Stamp Duty Land Tax changes affect me?

In a landmark move aiming to stimulate the property market for homebuyers, the Chancellor announced a rise in Stamp Duty Land Tax (SDLT) on Additional Dwellings.

Buyers of properties that are not their primary home will now have to pay an additional five per cent SDLT, up from three per cent pre-Budget.

The two groups that will be most affected by this change are those buying second homes or investment properties, and first-time and main home buyers.

The cost of investing

The move is designed to make it more expensive to buy a second home or invest property, thereby discouraging purchases.

The Government hopes that this will free up properties for main home buyers – with an estimated 130,000 additional transactions expected over the next five years.

Supporting buyers

The Chancellor’s measures reflect a trend that has been facing the residential property market for a number of years – investors with significant capital buying properties, making it more expensive and difficult for main home buyers to enter the market.

While these buyers will not benefit from reduced SDLT, it is hoped that the higher rates for investors and second home buyers will discourage buying and encourage disposal.