News · 25 November 2015
Buy-to-Let Stamp Duty Surcharge Announced
Chancellor George Osborne announces a 3% stamp duty surcharge on second homes and buy-to-let purchases, alongside new affordable housing and Help to Buy measures.
Those who purchase a second home or a property to use for buy-to-let will have to pay an extra 3% in stamp duty, Chancellor George Osborne has announced.
The move, effective from next April, will raise £1bn by 2021, Osborne said. The money will be used to help fund a doubling of the housing budget to £2bn, for building 400,000 new affordable homes to buy as well as rent.
From tonight the tenants of five housing associations will be able to exercise their right to buy. A Help to Buy for shared ownership will relax the rules around shared ownership, allowing more people to use the scheme.
With a nod to spiralling London house prices, the Chancellor also announced a new London Help to Buy scheme that will allow people in the capital to get a loan to help buy a home. Londoners with a 5% deposit will be able to get an interest-free loan worth up to 40% of the value of a newly-built home, according to the notes of Osborne's speech.
"We are the builders", Osborne said.