Speaking during today’s Autumn Statement, he said that corporate property development would not be affected, and that the billion pounds raised by the increase would go towards building 400,000 new homes as part of the government’s ‘affordable housing’ plan.
Speaking, Osborne said that “more and more homes are being bought as buy-to-lets or second homes”, and that many of them are cash purchases that aren’t affected by the restrictions introduced in the Budget on mortgage interest relief.
“Frankly, people buying a home to let should not be squeezing out families who can’t afford a home to buy.
“So I am introducing new rates of Stamp Duty that will be 3 per cent higher on the purchase of additional properties like buy-to-lets and second homes.
“It will be introduced from April next year and we’ll consult on the details so that corporate property development isn’t affected.
“This extra stamp duty raises almost a billion pounds by 2021 – and we’ll reinvest some of that money in local communities in London and places like Cornwall which are being priced out of home ownership.
“The funds we raise will help building the new homes.”
Watch this space for details as they emerge.