Budget relevance to Landlords & FTB’s

Mar 25th 2010

Of all of Mr Darling’s announcements, there are perhaps only three of direct relevance to a landlord’s business:

  1. The Stamp Duty Land Tax (SDLT) threshold is to be raised to £250,000 for first-time buyers  – not likely to have a huge impact on the average landlord but it may provide that final push to some tenants to take their first step onto the property ladder.
  2. A new 5 per cent top rate of SDLT for properties transactions in excess of £1 million is to be introduced. Due to the way that bulk purchases are valued in relation to SDLT this could mean that landlords buying multiple properties in one go will pay significantly more tax.
  3. When calculating average rent levels for Local Housing Allowance the most expensive properties are to be excluded from the calculation. Exactly how this will be accomplished is not entirely clear – but it could impact on the top LHA rates in some areas.