According to the 2016 Homeowner Survey conducted from HomeOwners Alliance and BLP Insurance, 47% of UK adults support the stamp duty surcharge while 18% oppose it.
Supporters of the stamp duty surcharge on second homes believe the measures are a good way to level the playing field between those buying a home to live in and those making an investment purchase.
Some feel there has been a shortage of homes available for first-time buyers and this will make it harder for buy-to-let investors competing to purchase similar properties. There are some anti buy-to-let feelings – a sense that buy-to-let may have been inflating house prices and pricing out local residents in some areas. Some also feel that those able to afford to buy a second home or to buy a property for the purpose of letting it out and making profit should be able to afford to pay higher stamp duty on their purchase.
Those in the South West, where there is a real shortage of affordable homes, are most in favour, with 59% supporting the change.
Those who oppose the stamp duty surcharge on second homes suggest the policy could have unintended consequences such as the surcharge being passed on to tenants in the form of higher rent. Comments also indicate that they feel the government is making another tax grab or that the policy is anti-enterprise.
Stamp duty reforms introduced at the end of 2014 which replaced the slab structure of tax with a progressive stamp duty tax were also well-received with one third (33%) saying the reforms make buying their first home or moving up the ladder more affordable.
Paula Higgins, Chief Executive of HomeOwners Alliance, said:
“The British public believe that homes are for living in and not speculating with. The stamp duty surcharge might be bad for landlords but it will allow more young people to realise their dream of owning the roof over their head. This is why we initially called for the tax system to differentiate between aspiring homeowners and property investors. However, we must see the money raised ploughed back into building more affordable housing.”
Kim Vernau, Chief Executive Officer, BLP Insurance, added:
“There is a dichotomy in the UK housing market between being able to afford to buy or rent a home. The current government policy in respect of stamp duty is clearly supporting first time buyers to access the market, which is a positive. The downside is the fact that this impacts adversely on those who cannot afford to raise a deposit and have to rent. The increase in stamp duty land tax will deter both individuals and, equally importantly, institutional investors from investing in the provision of long term rental properties, which are needed to help unlock the housing crisis we are experiencing. There needs to be a balance, not least as rental investments will also support the affordable housing sector.”