The government’s attempts to curtail buy-to-let and second home purchases, by increasing stamp duty for additional homes, have had minimal impact on the market, according to one of the North of England’s leading residential conveyancing firms.
LCF Residential, which is the conveyancing division of Yorkshire based law firm, LCF Law, says that all the property transactions it was working on during the Budget, that were being bought by second home buyers and investors, have gone ahead as planned.
This follows chancellor Rachel Reeves using October’s Budget to hike up the stamp duty surcharge for second properties from 3% to 5% overnight.
Julie Davis, head of LCF Residential, said: “People buying second homes or investment properties were already subject to a higher rate of stamp duty prior to the Budget and adding an additional 2% onto this doesn’t appear to have made any difference to the market so far.
“Out of the dozens of transactions we were working on, that were being bought by buy-to-let investors and second home buyers, each one has still gone ahead as planned.
“The Treasury’s aim with these changes was to give first-time buyers and those looking to move home an advantage over second home buyers and landlords. However, it remains to be seen whether these changes are enough to significantly alter that market.”
Davis added: “It’s also worth remembering that from 1st April 2025, stamp duty rates are changing for homebuyers, when the temporary increases to the thresholds that were put in place in 2022, come to an end.
“Homebuyers don’t currently pay stamp duty on properties below £250,000, but this will drop to the previous level of £125,000 in April. In addition, the threshold at which first-time buyers pay stamp duty will fall to £300,000 from £425,000 and although this might not affect too many first-time buyers in the North, it will have an impact in other parts of the country.”
Read the orginal article: https://propertyindustryeye.com/stamp-duty-hike-on-additional-homes-fails-to-deter-btl-investors/
