The new Chancellor of the Exchequer has been urged to consider suspending stamp duty for professional medium-sized and corporate landlords after it was revealed Philip Hammond is a former buy-to-let investor.
Former National Association of Estate Agents president Simon Gerrard says with fewer BTL investors acquiring property following the introduction of the 3% stamp duty surcharge for those acquiring second homes, there is some concern that the availability of homes in the private sector could lead to a sharp rise in rents.
He says the only way to prevent that from happening is to suspend the extra 3% stamp duty for landlords with five or more properties in their portfolios.
Gerrard adds: “We have a serious housing shortage, particularly in London, and need to support medium-sized landlords.
“The only way to keep these individuals in the market and encourage them to keep calm and carry on in the midst of much panic, is by removing the tax disincentives attached to BTL investments.
Meanwhile, Hammond was the subject of speculation on Twitter that he might scrap or at least soften some of the mortgage interest relief, stamp duty and wear and tear allowance changes introduced over the past two years by former Chancellor George Osborne.
This follows media reports that in 2012 Hammond “avoided thousands of pounds in tax after transferring his share of a £600,000 BTL property to his wife”.
The Mirror reported that while such a transfer was not illegal, it may have led to the couple paying less tax overall.
