Some of the UK’s largest residential landlords have said that the government’s 15 per cent stamp duty levy for houses worth more than £2m will be a great threat to their business.
Duke of Westminster’s Grosvenor Estate has said that the stamp duty will make it difficult for institutional property owners to invest. The company plans to talk to HMRC about how the tax would be implemented.
The landlords have condemned the government’s measure of charging a 15 per cent stamp duty when a person buys a house through a company as opposed to a seven per cent rate of stamp duty that private housebuyers pay.
Cordea Savills, the asset management arm of Savills Plc too will refrain from acquiring properties till it has discussed solutions with the government. In addition to this, Lobby group London First has said it will write to the Treasury this week to reconsider the 15 per cent stamp duty levy.
Chancellor George Osborne used the recent Budget to announce a stamp duty charge on homes worth more than £2m. Some 2,059 properties worth in excess of £2m have been sold in London in the past two years, according to Zoopla.co.uk.