On 25th November the Chancellor set out the Spending Review and Autumn Statement to Parliament. The initial announcement from the Government had suggested a broadly positive Autumn Statement for the housing sector. Notably with further funding for Starter Homes, and Help to Buy Shared Ownership homes, all apparently as part of a drive to build 400,000 affordable homes by the end of the decade.

However, there was a sting in the tail for buy-to-let investors and second home owners. With George Osborne announcing higher rates of Stamp Duty Land Tax (SDLT) on purchases of additional residential properties (above £40,000), such as buy to let properties and second homes, from 1 April 2016. The Government will consult on the policy detail, including on whether an exemption for corporates and funds owning more than 15 residential properties is appropriate.

The higher rates will be 3% above the current SDLT rates, with the example below illustrating the differing tax rates on each slab of property value that investors and second home owners will be liable to.

The Treasury have confirmed that where a buyer of a second property had already exchanged on the purchase on or prior to the date of the Autumn Statement, that buyer will not be subject to the additional 3% rates of tax. However, those exchanging going forwards will be liable to the additional 3% charge, where the transaction does not complete before 1^st April 2016.

Looking forward, this latest tax may lead to a pre-deadline rush as landlords and second-home buyers seek to acquire property before 1^st April next year. However, with the Conservatives very concerned by falling levels of home-ownership, and the potential electoral impact further down the line, landlords may take the view that there may be more punishment to come. D:Ream famously sang: “Things can only get better.” Landlords may be inclined to disagree.