Assembly urged to scrap its 3% buy to let stamp duty surcharge

The Residential Landlords Association is asking the Welsh Assembly to scrap the three per cent stamp duty surcharge imposed on buy to let properties in a bid to boost the number of homes to rent.

The Welsh Assembly is set to adopt the new Land Transaction Tax – the Welsh equivalent of stamp duty – and the RLA is now lobbying assembly members to drop the surcharge which was brought in by George Osborne.

The RLA says that earlier this year the cross-party Treasury Select Committee confirmed the association’s claim that the surcharge is likely to reduce the number of homes to let and would see rents hiked.

In addition, at the end of last year a report by the Public Policy Institute for Wales said “a significant proportion of future need and demand for housing” will need to be met through the buy to let and broader private rental sector.

Now, as the Welsh Assembly is due to consider legislation to replace stamp duty with the new tax, the RLA is encouraging Assembly Members to bring in a regime that stimulates investment in providing the new rented accommodation which is so badly needed.

“We strongly welcome the Welsh Government’s commitment to boosting the supply of housing. Wales needs more homes to rent and buy” says Douglas Haig, RLA vice chairman for Wales.

“Recent tax changes by the UK Government will only serve to stifle the supply of affordable homes to rent, increase rents and make it harder for tenants to save for a house of their own. Ministers and AMs at Cardiff Bay now have a significant opportunity to reform the way property is taxed to support the growth of housing we all want to see” he adds.