George Osborne Has Increased Taxes For Private Landlords

In the latest blow to landlords in the private rented sector, George Osborne has today announced an additional stamp duty surcharge that will come into effect in April 2016. The 3% surcharge will apply to those buying second homes and those buying-to-let.

Osborne announced the new measures in today's Autumn Statement and expects the levy to raise £1 billion by 2021. For example, on a £250,000 property the landlord could have to pay around £5,000 extra come April.

But while £1 billion extra in the government's coffers is all well and good, there are fears that the tax could firstly deter new landlords from entering the market and secondly inflate prices in the private rental sector (should landlords decide to pass the cost on to tenants).

Image courtesy of Flickr, Creative Commons.