More than twice as many homeowners (47%) support the 3% Stamp Duty surcharge for buy-to-let landlords and second homebuyers than oppose it (18%), according to a recent survey.
The study, conducted by YouGov on behalf of HomeOwners Alliance and BLP Insurance, found that the change is seen to support first time buyers and owner-occupier properties.
Those in the South West, where there is a serious shortage of affordable homes, are most in favour of the higher tax rate, with six in ten (59%) supporting the change.
Homeowners Welcome Stamp Duty Surcharge for Landlords
On 1st April, the Government introduced a 3% Stamp Duty surcharge for those purchasing buy-to-let properties and second homes. The change was initially met with opposition from many groups.
Supporters of the surcharge believe the measure will help create a level playing field between those buying homes to live in and those purchasing an investment property.
One respondent to the survey says: “The buy-to-let market is slowly destroying the overall housing market and making affordable properties less available for those wanting to own a home as their principal place of residence.”
Some have witnessed a shortage of homes available for first time buyers, and hope that the Stamp Duty change will make it harder for landlords to purchase similar properties.
Additionally, buy-to-let landlords have been blamed for pushing up house prices and pricing local residents out of the housing market.
Some also believe that those able to afford a second home or investment property should be able to afford to pay a higher rate of Stamp Duty.
Those who oppose the surcharge suggest that the measure could have unintended consequences, such as higher rent for private tenants. Landlords also feel that the Government is making another tax grab at the buy-to-let sector.
One respondent states: “I have been saving for some time (five years) to be able to afford to purchase an investment property. This change has now meant that it is not feasible for me to do so. It is unfair to penalise people who work hard and save.”
Stamp Duty reforms for all buyers, introduced in December 2014, were also well received, with one third saying the changes make buying their first home or moving up the property ladder more affordable.
Furthermore, concerns over Stamp Duty have subsided significantly. In March 2014, it was found that two-thirds of UK adults (64%) said Stamp Duty was a serious problem, while the latest survey shows that just half (52%) regard Stamp Duty as a serious issue.
The Chief Executive of HomeOwners Alliance, Paula Higgins, comments: “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.”
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