Landlords everywhere are suffering from the increased Stamp Duty charges introduced by George Osborne when he was Chancellor of the Exchequer. However, landlords purchasing properties in the south east and London are suffering more than most.
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Stamp Duty Bill Triples for Some Landlords
UK landlords have seen their Stamp Duty bill tripled in many cases. With the average cost of a property now £220k, the Stamp Duty bill has shot up from £1,891 to £8,477. In the south east and London, however, the hit is a lot harder.
The area with the smallest difference is Northern Ireland. There, landlords are only paying an extra £3,764. Landlords in the north east, Scotland and Wales are also relatively unaffected, mostly because property prices are very low.
Landlords Paying More Stamp Duty
Landlords in London and the south east are paying an extra £9,000 to £14,000. Taken in conjunction with the loss of mortgage interest tax relief, potentially pushing some into a higher tax bracket, this is a big burden for many landlords.
Perhaps it is not surprising that some landlords are deciding to leave the private rental sector.
“Being a landlord in the current climate can be a profitable business, especially if there is a demand for rental properties as we’ve seen in recent years,” says Christina Dimitrov from Direct Line for Business.
She continues, reminding landlords that they need to be “fully up to speed with legislation,” as penalties for falling foul of the law can be severe.