scrapping stamp duty would improve conditions, say property investors
68% of property investors said scrapping the additional 3% stamp duty hike on buy-to-let and second homes would improve conditions in UK real estate, mtf’s Q2 2018 Property Investor Survey showed.
The government introduced a series of changes to slow down an overheated property market and reduce the number of buy-to-let investors. The introduction of the 3% surcharge in April 2016 has severely limited investor appetite for buying properties with the intention of renting them out.
Meanwhile, 32% of property investors called for a reversal on the changes to tax relief on buy-to-let mortgages. Those changes were introduced in April 2017 and have cut buy-to-let tax relief to 20% from 45%, for top rate taxpayers.
Some 66% of the 100 property investors surveyed revealed they now own properties in a limited company, with 82% of those saying this was due to the reduction in mortgage interest tax relief.
In total, 80% of those questioned said they felt the Government was not doing enough to support them.
Property investors have been dealt some setbacks, impacted by changes to stamp duty and changes to tax relief. Despite the changes, many investors remain resilient and mtf is here to support them and fulfill their funding needs.