Stamp duty rise a ‘heavy burden’ says Hastings landlord

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The rise on stamp duty prices comes into force today (April 1) for those buying buy-to-let properties.

Yesterday was expected to see a last-minute rush to buy properties before the policy was introduced at midnight.

Investors will now have to pay an extra three per cent in stamp duty when they buy a new rental property meaning the duty on a property sold for £200,000 will rise from £1,500 to £7,500.

Hastings landlord, Robert, said: “If I was looking to invest in another rental property the extra three per cent on stamp duty would be a heavy burden to pay.

“It would have to be taken into account that when considering what the potential return on your investment would be, it may be enough to deter some landlords from investing.”

The local buy-to-let landlord co-owns three properties and is now opting out of buying any more.

“I was looking to buy two more properties, but not anymore,” said Robert.

Usually renting some of his properties to students living in the Hastings area, he faces an even bigger problem with the announcement of the University of Brighton, Hastings Campus being closed down in the next two years.

“In my own case, with Brighton University pulling out of the town, I don’t think I will be getting another property in any event”, said Robert.

The new policy was only confirmed in March, leading to buy-to-let landlords rushing in a last minute bid to invest in properties before the rise.

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