This decision is all well and good if you are a first time buyer, trying to get on the property ladder and finding it difficult to secure a property when they keep being snapped up by investors – however, what if you are one of the 22% of UK tenants who don’t ever expect to make it onto the property ladder?
'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% higher on the purchase of buy-to-let and second homes.'
What if you are reliant on landlords providing a stream of rental properties across the country, often in some of the priciest towns and cities? This ongoing tax on landlords is forcing many property investors to reconsider their future in the buy-to-let market, and the subsequent impact on the rental market could have huge consequences.
It is fair to assume that a significant part of the problem with today’s extreme house prices is a simple case of supply and demand. There is more people wanting to buy than there are available properties, so in turn the prices are forced up. Should landlords decide that owning a buy-to-let investment is no longer financially viable, and fewer are available on the market, the same phenomenon will surely occur? George Osborne may dream of a time when every home in the UK is owned by the occupier, but sadly it is not a likely outcome, and penalising landlords is only going to ultimately ‘tax the tenants.’
The move towards giving first time buyers a helping hand is great, it should be applauded and it will surely ease the pressure of the current property bubble, however, it is important to remember that we are not only a nation of first time buyers!
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