The Government should cut Stamp Duty for home buyers, and raise it instead for buy-to-let landlords.
The call has come from a campaign group, the HomeOwners Alliance, ahead of Thursday’s Autumn Statement.
The Alliance also wants to see a Stamp Duty increase for second home purchasers and property speculators.
Paula Higgins, chief executive of the HomeOwners Alliance, said that in effect a new ‘property speculation’ tax would be created.
She said: “Too often, home owners have little chance in the property market competing against investors.
“The Government must use stamp duty to give ordinary home owners who just want to own the roof over their head a head start against property speculators, buy-to-let landlords and second home buyers.
“Homes should be for living in, not speculating with. The property speculator tax would help tilt the whole property market in favour of the ordinary home owner – and it wouldn’t cost the Government a penny in lost revenue.”
Asked whether raising Stamp Duty for buy-to-let landlords wouldn’t simply result in higher rents for tenants, she said: “That may be true, but by making it less attractive to an investor, we could help give ordinary UK residents a fighting chance to buy their own home.”
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Comments
"Homes should be for living in, not speculating with".
Quite right too. And last time I checked people were definitely living in the homes they rent from me"
Many landlords find the present yield is so low that it is only tolerable as bank deposits are an unattractive alternative, and house prices may rise to make it worthwhile.
Many investors are NOT fat cats, they are people who are getting on a bit, have not made sufficient provision for their old age, but as a result of working hard to date can afford to get a buy to let mortgage. I am in this category & have enough saved up for a 65% deposit on a rental house. If I make a success of this then I am less likley to have my hand out for tax payer funded benefits in my dotage.
I have found that many tenants do not even aspire to being home owners, some don't want to have to shoulder that sort of responsibility as being a tenant is a bit like leasing a new car.... costly but lets you be lazy and spend your free time having fun rather than doing maintenance.
"By making it less attractive for an investor"
If landlords stopped buying houses where would the thousands of housing benefit tenants live. The local authority can't help them. As a landlord I may be investing in my own future but I am also providing warm and comfortable homes to several tenants who otherwise would be living in B&B's.