Chancellor George Osborne’s clampdown on buy-to-let investors in last week’s Autumn Statement has come under fire from one of the world’s largest independent financial advisory organisations.
Mike Coady, deVere Group’s global head of mortgages, said the Chancellor’s decision to increase stamp duty by 3% on buy-to-let properties and second homes would be largely “ineffective” in helping first-time buyers get on the property ladder.
Commenting on the stamp duty changes, Coady said: “In the medium to longer term, I don’t believe it will put off overseas or UK purchasers from investing in property.
“Despite the 3% stamp duty surcharge, which is not ideal of course, most investors will still regard investing in property in the UK, especially in areas like London, the South East and Manchester, as an attractive and safe investment opportunity.
“In addition, as the investment is typically a long-term one, 3% over the entire investment period is something most property investors will absorb.
He said the announcement was a political stunt based on appealing to the politics of envy and could trigger a rush to buy property before the April deadline, pushing up prices in the short-term.
In a bid to tackle the housing crisis and boost home ownership for first-time buyers, Osborne announced in last week’s Autumn Statement that on top of building 400,000 new properties, the government would increase stamp duty by 3% on buy-to-let and second homes.
Coady said that lifting planning restrictions and building more homes would be a better way of dealing with the ongoing housing crisis.
“Those who are renting could find their rents are even higher after this policy comes into effect in April, as landlords pass on their higher costs to tenants. This, therefore, would make it even harder for first-time buyers to get on the property ladder.
“The stamp duty will be ineffective in helping first time buyers, indeed it could hinder them further. If the government is serious about helping generation rent it needs to rethink. The solution to the housing crisis is not the rate of stamp duty.”
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If the Government raise the Stamp duty only on Buy to Let purchases, and 2nd homes, then it is creating a discrimination, which is supposed to be illegal.
Ones money is supposed to be Equal in Spending, and Buying.
The Governments aims are being wasted, when they can not build enough houses with our money, and at the same time blame Buy to Let Investors for buying up empty dilapidated
property, who then almost rebuild some of them, and do up many thousands more, making them into good quality homes to rent.#
Compared to the Local Councils in England, who own hundreds of thousands of properties,
that are barely fit to live in. They suffer from poor, and often non existent maintenance, which even when carried out, is below standard.
If Buy to Let Landlords are so bad, then why are there so many Regulations for Landlords, that do not apply to the Councils, when Councils even Rent from Private Landlords.
Stop blaming Private Landlords, for the Governments failure in building enough new houses.
Private Landlords create jobs for Builders, Decorators, Plumbers, Electricians, Auctioneers,
Solicitors, Agents, and numerous other people.
Private Landlords put roofs over Families, who can not afford to buy their own homes.
Remove Private Landlords, and see how many people will have to live on the Street, because
the Councils waiting lists are so long, and 10 years behind, even assuming you are allowed to be on their waiting lists.
Wake up England, Stop attacking those that are Helping the homeless.
Again it’s all reactive and not proactive , in liverpool all landlords have put up the rent as councilor obyrne has made them pay for a license which will also be passed on to tenants. Stamp duty and licenses do not help first time buyers.