25th Nov 2015 13:54
LONDON (Alliance News) - People purchasing buy-to-let properties and second homes in the UK will pay an extra 3.0% in stamp duty from April 1, 2016, Chancellor of the Exchequer George Osborne said on Wednesday.
Shares in buy-to-let lenders fell on the London Stock Exchange following the news. Aldermore Group PLC was down 6.6%, OneSavings Bank PLC down 5.2%, Paragon Group of Companies PLC down 3.1%, Shawbrook Group PLC down 1.5%, and Virgin Money Holdings (UK) PLC down 0.5%,
Delivering his first Autumn Statement as chancellor of a Conservative government, Osborne said that money raised from the tax on people buying their second home will be used to help those struggling to buy their first home.
Osborne said his plan "addresses the fact that more and more homes are being bought as buy-to-lets or second homes".
"Frankly, people buying a home to let should not be squeezing out families who can?t afford a home to buy," Osborne told lawmakers.
The extra stamp duty will aim to raise almost GBP1.0 billion by 2021, Osborne said.
The proceeds will be used to double the UK's housing budget to GBP2.0 billion per year, with 400,000 affordable new homes to be built by the end of the decade, among other measures.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Virgin Money HoldingsParagon GroupALD.LOneSavings BankSHAW.L