Charles Haresnape, Group Managing Director, Mortgages at Aldermore, who was sitting on the panel debating the 3% stamp duty land tax (SDLT) surcharge which will be implemented on 1st April this year, stated that the increase is the least of investors’ problems for the buy-to-let market.
“If you are an investor, 3% is a pain, but it’s nothing really,” Charles said.
Charles explained that over the lifespan of an average buy-to-let investment, the SDLT surcharge was “tiny”.
“If house price inflation goes on the way it is, and who knows if it will or not, you get that extra 3% back in the first two months of house price inflation.
“That’s the reality, that’s the quantum.
“There [are] many bigger threats to buy-to-let rather than the stamp duty.”
Charles stated that higher rate tax relief changes had a bigger impact than stamp duty, and had a significant impact on higher rate tax payers.
“The biggest problem of all, if it ever happens, is Basel III…which means that [the cost to lenders] will go up dramatically,” Charles said.
“European government[s] are lobbying very hard and actually saying they won’t implement it, but who knows.”
Charles explained that Basel III would not depend on whether there was a Brexit or not.
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