Speaking during today's Autumn Statement, he said that corporate property development would not be affected, and that the billion pounds raised by the increase would go towards building 400,000 new homes as part of the government's 'affordable housing' plan.
Speaking, Osborne said that "more and more homes are being bought as buy-to-lets or second homes", and that many of them are cash purchases that aren’t affected by the restrictions introduced in the Budget on mortgage interest relief.
He added:
"Frankly, people buying a home to let should not be squeezing out families who can’t afford a home to buy.
"So I am introducing new rates of Stamp Duty that will be 3 per cent higher on the purchase of additional properties like buy-to-lets and second homes.
"It will be introduced from April next year and we’ll consult on the details so that corporate property development isn’t affected.
"This extra stamp duty raises almost a billion pounds by 2021 – and we’ll reinvest some of that money in local communities in London and places like Cornwall which are being priced out of home ownership.
"The funds we raise will help building the new homes."
Frank Nash, partner, at Blick Rothenberg LLP said:
“It is going to be challenging to police the SLDT surcharge for second homes – a purchaser could easily declare the new home as their main residence immediately.”
Robert Pullen, tax manager, at Blick Rothenberg LLP added:
“Buy-to-Let purchases from April 2016 will suffer an additional 3% SDLT. This is likely to cause initial spike in house prices as investors rush to buy, but the long term impacts are not known. It could result in even larger rent costs as landlords seek to recover the new tax.”
Jamie Morrison, Private Client Partner, HW Fisher & Company, commented:
"With the Autumn Statement, the Government has continued its attack on residential landlords.
"In fact, with the extra 3% added to stamp duty it's starting to feel more like an all-out offensive.
"This is a triple blow for Middle Britain seeking to invest in buy-to-let, its traditional alternative to pensions.
"As well as the previously announced restrictions on mortgage interest tax relief, landlords now have to face increased stamp duty when they buy a property and, from 2019, accelerated CGT when they sell it.
