Mark Wells, CEO, Invisible Homes: “The decision to increase Stamp Duty Land Tax for buy-to-let landlords is a short-sighted policy that will have unintended consequences. While it may seem like a good idea to reduce competition for first-time buyers and thus lower prices, the long-term effects are far more complex.
Firstly, it is a betrayal of those who have worked hard to get onto the property ladder, only to see their asset depreciate. What’s the point of struggling to buy a home if it’s just going to lose value? Secondly, this policy will drive up rental prices, leaving tenants with less choice and forced to pay more or face homelessness.
Overall, this is a lose-lose situation. Either you buy and lose money, or you rent and lose money. It’s time for a more nuanced approach to housing policy that considers the needs of all stakeholders, not just first-time buyers.”
Grahame Salt, Director, Homes of Quality: “A significant number of UK nationals have historically established residence in Malta (an EU member state) and taken advantage of Malta’s tax residence programmes. Over the past months, the level of interest in Malta as a place of residence has increased significantly. Some British expats have also relocated from other EU jurisdictions like Spain and Portugal due to more favourable conditions offered by Malta, such as no wealth tax, property taxes or inheritance tax. Many high net worth British nationals have also taken up Malta’s citizenship by direct investment programme.
We believe the tax reforms announced in today’s Budget are likely to contribute to an increase in demand from the UK, specifically given that the Non Dom tax status will be abolished from April 2025″.
Marc Schneiderman, Director, Arlington Residential:
“The Chancellor decided to make a huge additional increase on SDLT for second home buyers increasing by a further 70%, so it will now cost an extra 5% to buy a second property.
This is the 15th change to SDLT in the last 24 years. Yet again, another Chancellor has seen SDLT as a soft target and a very unfair one, taxing many who have worked hard to be able to buy a home and taxing them from tax-paid money.
This will have a huge impact on the rental market with far fewer buyers purchasing buy to let properties and mean fewer rental properties to rent, and with less choice will come higher pricing, which will fuel an already competitive, and at times, ferocious rental market.
The abolishment of the Non-Dom Regime from April 2025 will see many HNW individuals live elsewhere withdrawing employment and investment from the UK.”
Mark Parkinson, Co-Founder and Director, Middleton Advisors: “It’s uncomfortable, but I don’t see it drastically moving the dial in any direction. While there will be more supply in the market, most were expecting a significant hike in taxes, so it could be worse. For those who have been sitting on the fence, waiting for a result, hopefully, they will feel more confident in committing to the property market.
The change in non-dom status was the biggest takeaway for us. You could argue that the damage has already been done, as we anticipated this change. It will be interesting to see what the new residence-based regime entails and its potential effects.
What’s more significant is what hasn’t been said, particularly for those who have put their property plans on hold. There were numerous theories floating around, such as CGT on main homes and mansion tax being targeted—neither of which have materialised.”
