SDLT has become the property equivalent of using reaper drones to deliver weapons
Thursday, November 26, 2015 by
It seems odd that in his political attempt to favour locals vs second home buyers and first-time buyers vs buy-to-let landlords, the Chancellor thinks that difference in value the parties represent a mere 3%, the extra amount of SDLT due to be levied from April on second homes and BTL landlords. Restricting the supply of property into the PRS, the biggest rental sector, risks limiting choice. Breaks for build-to-let by larger investors and a smart new way of managing assured short hold tenancies are what are required, not yet more suppression of demand.This all seems to work well on the continent and for many ownership is an unrealistsic, and sometimes not the best, solution to their housing needs. Again, supply is the key.
The London Help to Buy will go somewhat to help satisfy the huge supply of new homes coming up in the capital so was a welcome addition as is the relaxation of Shared Ownership rules. For many having a safe newly built home makes sense and in an sector likely to be seeing some oversupply over the next three years or so, and given developers have to sell at a price without any discretionary luxury open to second hand sellers, there may be some reasonable deals around to use this new facility.
It is a shame though to have seen the Chancellor yet again using SDLT as a battering ram. It seems to have become the property equivalent of using drones....remote and blunt. Every rise in it causes a little bit of the market to die.