The New Stamp Duty...

Over the past few years, landlords have faced a wave of new regulations and taxes. From the original 3% stamp duty surcharge in 2016 to limits on mortgage interest relief, and now the new Renters' Rights Act, it’s been one thing after another. Add to that stricter energy efficiency standards and reduced capital gains tax allowances, and it's no wonder some landlords feel stretched.

 The latest change – raising the stamp duty surcharge from 3% to 5% for buy-to-let properties – is another layer of costs -  but is it a dealbreaker? 

For landlords with a long-term outlook, this extra cost may be just another hurdle to clear. When spread out over years, it’s less impactful. Remember back in 2016 when the 3% surcharge came in? Few were deterred, and the market adapted! 

And here’s some good news: rental prices have been climbing, with annual increases of 8-10% thanks to wage growth and strong demand. Even with inflation, renters’ purchasing power has grown, meaning rental income could stay steady. 

Plus, recent cuts in capital gains tax, combined with current house prices being around 15% lower than three years ago, may actually make this a good time to buy a rental property. 

While upcoming energy regulations are a concern, we’ve seen the government take a gradual approach before to avoid big disruptions – they’ll likely do the same this time around.

For Rugeley landlords, this stamp duty increase might mean careful negotiations, but it doesn’t erase the value of buy-to-let.  Property remains one of the few investments offering both income and growth, especially for those in it for the long haul. 

In the ever-changing world of property, buy-to-let still holds strong! 

For all things property related contact us on 01889 583 377 or call in for a cuppa and a chat ... our door is always open