Reform urged for government's proposed 3% stamp duty on buy to let

The CML today urged the government to reform the implementation of the 3% stamp duty surcharge on second homes, in order to mitigate potential damage to the market as a whole

They are of the view that the current plans are likely to, inadvertantly, cause rents to increase - precisely the opposite of the government's intention

The concerns include:

• Landlords may increase rents to cover the extra cost - especially since mortgage relief for landlords is also concurrently being phased out
• If the government's aim is to create more affordable housing (both for rental and purchase), then why exclude the economic contribution of many individual landlords who buy off-plan, in favour of institutions' new build activity?
• The CML also proposes deferred payment of the surcharge, as it would be inefficient and unfair for those who are moving into a new main residence, and get caught owning the two properties for a short space of time. This often happens due to market hold-ups, and not due to owners wishing to have the two properties long term

See here for the Council of Mortgage Lenders press release, and also the government's questions and CML's responses