There could be trouble ahead for property investors in Bristol and Bath in the New Year, with new stamp duty tax measures announced by George Osborne recently.
One particular article I came across this week highlighted that the Chancellor’s plans to increase stamp duty for buy-to-let investors could prevent housing developments being launched, as well as putting additional financial pressure on private rented accommodation tenants.
From next April, buy-to-let property investors will pay an extra 3% stamp duty, a move which will generate an extra £3.8bn in tax payments for the Treasury.
This would mean, for example, that a buy-to-let landlord in Bristol or Bath would pay £10,000 stamp duty on a £250,000 property, rather than the current £2,500.
The new tax measures could also force existing property landlords to increase their rents, to meet the additional taxation on their property portfolios as they purchase new properties across the region in 2016 and beyond. Tenants will foot the tax bill.
Potential homeowners in Bristol and Bath will also find it harder to save for a significant deposit when looking to purchase their first home.
This, in turn, could cause house prices to continue rising across the South West due to a lack of supply. Many in the property sector will be monitoring the stamp duty tax increases carefully in the New Year – including our letting agents, of course.
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