Over two thirds of landlords are reluctant to invest in new properties as a result of the stamp duty surcharge on additional properties according to a new survey.
The initial findings of a survey of over 3,000 landlords carried out by the Residential Landlord Associations’ Private Renting Evidence, Analysis and Research Lab - PEARL - finds that 68 per cent were being put off purchasing any additional homes to rent as a result of the extra levy introduced in April last year.
The measure was introduced by the George Osborne as Chancellor in an effort to support first time buyers into home ownership.
However, figures from UK Finance show that between August and September 2017 there was a 10 per cent fall in the number of mortgages provided to first time buyers.
In the year to September 2017 the figure fell by one per cent.
The Royal Institution for Chartered Surveyors has reported that a further 20 per cent of respondents to its latest survey reported a fall in new buyer enquiries in October.
With demand for private rented housing likely only to increase, the RLA is calling on current Chancellor Phillip Hammond to use today’s Budget to scrap the surcharge.
RLA policy director David Smith says: “The previous Chancellor introduced the stamp duty levy to support firsttime buyers, yet the figures show this simply is not happening.
“Many of those looking for a place to live are facing a perfect storm – good landlords not prepared to invest in new homes to rent, whilst those same people are unable to access home ownership sectors. It is clear that the stamp duty levy is hurting but not working for anyone. It is time to scrap it.”