Stamp Duty Hike On Second Home And Buy-to-let Purchases Has Little Impact On Housing Market
Data from one of the North of England’s leading residential conveyancing firms has revealed that the government’s attempts to curtail buy-to-let and second home purchases, by increasing stamp duty for additional homes, have had minimal impact on the market.
LCF Residential, which is the conveyancing division of leading Yorkshire based law firm, LCF Law, says that all the property transactions it was working on during the Budget, that were being bought by second home buyers and investors, have gone ahead as planned.
This follows Chancellor Rachel Reeves using October’s Budget to hike up the stamp duty surcharge for second properties from 3% to 5% overnight.
Julie Davis, head of LCF Residential, said: “People buying second homes or investment properties were already subject to a higher rate of stamp duty prior to the Budget and adding an additional 2% onto this doesn’t appear to have made any difference to the market so far.
“Out of the dozens of transactions we were working on, that were being bought by buy-to-let investors and second home buyers, each one has still gone ahead as planned.
“The Treasury’s aim with these changes was to give first-time buyers and those looking to move home an advantage over second home buyers and landlords. However, it remains to be seen whether these changes are enough to significantly alter that market.”
Finally, Julie added: “It’s also worth remembering that from 1st April 2025, stamp duty rates are changing for homebuyers, when the temporary increases to the thresholds that were put in place in 2022, come to an end.
“Homebuyers don’t currently pay stamp duty on properties below £250,000, but this will drop to the previous level of £125,000 in April. In addition, the threshold at which first-time buyers pay stamp duty will fall to £300,000 from £425,000 and although this might not affect too many first-time buyers in the North, it will have an impact in other parts of the country.”
LCF Residential has a 27-strong team based across its offices in Leeds, Bradford, Harrogate and Ilkley. The firm works with homebuyers, sellers, and estate agents throughout Yorkshire and beyond, as well as nearly every UK mortgage lender.
LCF Law is an award-winning full-service law firm, which operates regionally, nationally and internationally.
With over 145 people including 24 partners across offices in Leeds, Bradford, Harrogate and Ilkley, LCF Law provides practical advice in a clear and efficient way: Law Fair + Square.
Visit www.lcf.co.uk for more details.
