Stamp duty tax increases do little to deter buy-to-let property investment boom

Chris Street

12th November 2016

advice on buy-to-let property investment from Optimise Accountants

I was monitoring property investment news this week, and as an experienced property tax s expert heading up Optimise Accountants I wanted to further discuss one story in particular for our property investment blog readers.

The article concerning a mini-boom in buy-to-let property investment – which can be read here – highlights that 25% of all properties purchased from July to September were as buy-to-let or second home investments.

How to make money from property investment

According to the statistics published by HMRC, more than 56,000 property purchases were for second home and buy-to-let property investment, resulting in additional stamp duty payments being made to the tune of £670 million to the Treasury for the period above.

I’m not surprised to see such a surge of interest in purchasing properties as second home investments or buy-to-let investments during this period – in fact, I predicted that George Osborne’s tax changes in the Budget Announcement earlier this year were primarily concerned with making first-time-house-buyers more prevalent across the UK this year.

Boom in buy-to-let investments

I wrote a blog here around the Budget Announcement which highlighted some of the tax changes introduced under the Osborne administration which might shed more light on the overall tax changes seen in the property investment sector this year.

Tax changes for property investors

Get in touch here to let me know your thoughts on how the tax changes are impacting your property portfolio so far.

The recently-published HMRC statistics also tie in closely with this article from the Daily Mail, with predictions that average house prices in the UK could increase by £50K in the next five years if current trends in property investment continue.

Property investment hotspots in the UK

The largest house price rises are predicted to be a whopping 17% across the South East in the next five years, with useful figures being released – there’s a particularly interesting and useful UK-wide diagram in the article, showing where property investment hotspots will be.

Get in touch with me or my team of property tax accountants here if you’re unsure about your tax position.

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