Buy-to-let investors continue to invest in the market despite stamp duty hikes, according to new figures released by the Treasury.
The amount of stamp duty collected since the extra 3% stamp duty was introduced has increased by 18% compared with the amount collected in 2015.
According to Treasury figures, 21% of stamp duty collected by the Treasury between June – December 2016 came from second homes.
The buy-to-let market has had to contend with multiple tax changes and stamp duty rises in recent years. The extra stamp duty surcharge came into affect in April 2016, while from April this year, tax relief on buy-to-let mortgage payments will be removed, though this will be phased in over several years.
Despite this, both existing landlords and potential investors have found ways to adapt to the changes, whether it be transferring a property into a limited company or HMOs.
With rental demand still strong in London and across the UK, there is a real need for buy-to-let properties. Buying a property remains out of reach for many Londoners, and more tenants are choosing to rent for longer.
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