More Landlords competing with 1st time buyers for cheap properties

The Government has shot itself in the foot with extra Stamp Duty charges on buy-to-let landlords, it has been claimed

The conveyancing software supplier Search Acumen claims that buy-to-let landlords snapped up properties usually purchased by first-time buyers in the last quarter – after the 3% Stamp Duty surcharge kicked in on April 1.

HMRC Stamp Duty data shows 113,100 transactions worth under £250,000 in the second quarter of 2016, up from 106,830 in the first quarter.

Of the 113,100, 20,700 were additional properties, liable for the surcharge.

In comparison, transactions between £250,000 and £500,000 fell from 72,700 to 71,000, of which just 6,900 were additional properties.

Andrew Lloyd, managing director of Search Acumen, said: “The Government has in many ways shot themselves in the foot.

“Instead of freeing up the lower end of the market for first-time buyers as promised by George Osborne, competition for these more affordable properties has intensified and therefore further squeezed out many first-time buyers from getting on to the housing ladder.

“The newly appointed housing minister will need to focus his attention on delivering a working and sustainable housing market, especially for this end of the market.”

Overall there were 102,010 residential property transactions in June, according to HMRC.

The figure was a big jump from 84,140 in May and 73,370 in April, but down from the big spike of 171,370 seen in March before the Stamp Duty hike.

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Written by: Houseladder