Landlords in approximately 13% of the country will be required to pay stamp duty on the purchase of a new property for the first time after April 1.
The claim comes from LendInvest as part of its quarterly research into the UK’s buy-to-let market, which this time looks specifically at the incoming stamp duty surcharge.
It reports that average house prices in 14 out of 105 postcode areas are less £125,000, meaning future buy-to-let purchases will be subject to up to £3,750 SDLT for first time.
Some 86% of first-time stamp duty payers will be located in the North East or North West, according to LendInvest.
The worst affected areas are set to be Darlington, Halifax and Doncaster. These locations have the most properties subject to stamp duty payments for the first time and also have some of the lowest average rents.
It also found that landlords in London and the South East will need longest to repay higher stamp duty bills – those buying in Inner London and Harrow will need equivalent of 20 months’ rent or more.
“The stamp duty hike spells bad news for landlords – and their tenants,” says Christian Faes, Co-Founder & CEO of LendInvest.
“Put simply: when taxes rise, someone has to pay. Our latest index shows that the likely payer is ultimately going to be the tenant, with higher rents. The Stamp Duty Land Tax hike will cause rental yields to fall for landlords, putting pressure on them to raise the rents they charge.”
“The Treasury’s decision to inflict this tax hike is part of their longer term plan to professionalise the buy-to-let market and make Britain a country of homeowners. While the mission has its merits, there are no quick fixes to the nationwide housing crisis. Until there are more houses on the streets that people can buy at reasonable prices, landlords have their place and their tenants must be protected.”