Buy-to-let (BTL) investors should be exempt from the stamp duty surcharge on second homes, as part of efforts to stimulate the housing market post-coronavirus, according to independent residential property consultancy Ringley.
Mary-Anne Bowring, group managing director at Ringley, said: “A stamp duty holiday would no doubt cause a rush of transactions and help breathe life into a housing market that has been put into deep freeze in an effort to battle coronavirus.
“The government should be looking at long-term solutions as well as short-term sticking plasters when it comes to fixing the UK housing market.”
This will take advantage of future shifts in residential demand, particularly when many prospective buyers may be put off moving towards ownership due to the impact of coronavirus.
Bowring added: “Millions of Brits were already renting, and that number was predicted to grow anyway with or without coronavirus.
“The disruption caused by coronavirus will likely see rental demand grow, as banks squeeze potential buyers with tighter lending restrictions and people [are] put off buying or selling a home as it becomes clearer COVID-19 will cause continued uncertainty and disruption in the medium term.
“Eliminating additional stamp duty for buy-to-let investors would help stimulate the supply of rental homes while also driving wider activity in the housing market.
“Landlords are a crucial source of development finance through off-plan sales and will help support getting Britain building again.”