Higher rents and jobs loss fears over stamp duty surcharge

February 21, 2016 by Brendan O'Neill

Property Market

According to the Commons Treasury Select committee, the measures introduced by Chancellor George Osborne may result in a loss of jobs and a slowdown in the UK ‘s economic recovery.

The Chancellor has introduced a new stamp duty “surcharge” which will affect landlords and owners of second homes, and this will take effect from 1st April 2016. The committee believes that the move could result in fewer private homes being available to rent, and the increase of rents.

As people may find it harder to relocate for jobs, there may be an impact on the creation of jobs. In a recent report, the TSC stated that the measures introduced by the Chancellor could have an impact on the economy, if the effect is substantial.

According to the Office for Budget Responsibility, the latest measures for landlords introduced in the Autumn Statement, will raise £3.8bn in taxes over the remainder of this parliament. From 2017, the Chancellor has also announced a reduction of tax relief on mortgage interest rates for landlords. The chairman of the TSC, Andrew Tyrie, urged the Chancellor to support renters, so that the wider economy isn’t affected by the changes. He stated that higher rents would remove access to an affordable rental market, which would impact on economic activity.

Mortgage advisers are provided with information about potential changes to the property market, and potential impacts, when they study for CeMAP. Consult a reputable mortgage adviser if you are struggling to find an affordable home.