TREASURY chiefs are planning to hike the extra levy on buy-to-let purchases in a fresh bid to ease the housing crisis.
The stamp duty premium to curb the purchase of second homes as money makers was established two years ago by then Chancellor George Osborne.
Alamy Buy-to-let landlords could face a Stamp Duty rate hike which means they have to pay an additional 3% of the property’s value in tax
It means buy-to-let purchasers have to pay an additional 3% of the property’s value in tax, on top of stamp duty.
The revelation comes in political writer James Forsyth’s column in The Sun.
But there have been questions on whether it has been successful in cooling the buy to let market, which is still fuelled by record low interest rates.
Buy-to-let mortgages now make up less than 13% of all new loans, down from 17% in 2015.
Alamy A government source said: ‘It will be sold as a measure to ease the housing crisis but it’s more about raising money’
But the number of buy-to-let landlords in the UK hit an all-time high of 2.5million in the last tax year.
A government source said: “Increasing the buy-to-let levy is something the Treasury are looking at doing in the Budget.
“It will be sold as a measure to ease the housing crisis but it’s more about raising money.”
Stamp duty rises and the buy-to-let premium rises with the value of the property.