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The drop was from £12.9 billion in 2017/18 to £11.9 billion in 2018/19.

This is despite overall HMRC tax receipts rising from £594 billion to £623 billion during the same period; this included inheritance tax receipts going up 3.1 per cent to £5.4 billion.

Analysts have rapidly put this down, at least partly, to resistance to purchase buy to let properties as a result of the additional homes stamp duty surcharge introduced in April 2016, and subsequent tax measures making buy to let less attractive.

The Daily Telegraph quotes David Smith of the Residential Landlords Association as saying: “The government are now in the last chance saloon to reconsider tax policy and seek to promote positive growth rather than seeking short-term gains.

He continues: “The people who will really suffer as a result of this fatal loss of supply are tenants, including a significant number of families who are reliant on private landlords for homes, as well as young buyers.”

Credited to: https://www.estateagenttoday.co.uk/breaking-news/2019/4/stamp-duty-plummets-by-1-billion-following-surcharge-backfire

What rate will I have to pay?
As the price you pay for a new property increases, so do the rates of stamp duty. You pay a percentage of the cost, and the rate payable leaps up at a set of thresholds – but, you only pay the proportion of the purchase price that's actually above the thresholds at the higher rate.

People buying an additional property (ie, in addition to any they already own) will be penalised in the form of an extra stamp duty charge on any property costing more than £40,000.

Under stamp duty rules that took effect in 2014 you pay different rates for different proportions of the property price. This will mean that the following additional property stamp duty rates will apply on each portion of the purchase price on buy-to-let and second homes.

What stamp duty will I pay?

PURCHASE PRICE

STAMP DUTY RATE ON MAIN RESIDENCE (1)

STAMP DUTY RATE FOR ADDITIONAL PROPERTIES (1)

Up to £125,000

0%

3% (2)

£125,000.01 – £250,000

2%

5%

£250,000.01 – £925,000

5%

8%

£925,000.01 – £1,500,000

10%

13%

£1,500,000.01+

12%

15%

(1) Rate applies to that portion of the purchase price. (2) Properties up to £40,000 are exempt from stamp duty. Properties between £40,000.01 & £125,000 will be charged stamp duty on the full purchase price.

This extract was taken from Money Saving Expert, you can find a link to their full article here.

https://www.moneysavingexpert.com/mortgages/stamp-duty/

The first article describes a decline in the amount of new buy to let investors and whilst these figures tell a story, we have found that there are still many investors looking to acquire new properties but they’re increasingly looking for greater returns from their investments or are more conscious of ‘capital growth’ than in previous markets. The first time buyers’ market has benefited and filled any void from an overall decrease of new buy to let investors as there is more choice for new home owners, especially with the more affordable properties not being snapped up by investors, the continued benefit of the ‘help to buy’ scheme and stamp duty relief.

The lettings market place has appeared to stay relatively steady with no significant decline in the amount of properties on offer to rent. The impending tenant fee (June 2019) has seen a small proportion of tenants delay a move, although this has not been significant and we anticipate speaking to an increased volume of landlords who are seeking the best service for their property management services and an agent who can secure the best long term tenant, which will maximise their future investment returns.

If you would like to discuss our agency services or have a question relating tour latest blog, please contact Pure Estate Agency on 01603 618618.

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