The government should scrap the stamp duty levy with more than two thirds of landlords now reluctant to invest in new properties, according to the Residential Landlord Associations’ (RLA).
A survey of over 3,000 landlords carried out by the Private Renting Evidence, Analysis and Research Lab (PEARL) found that 68% were being put off purchasing any additional homes to rent as a result of the 3% stamp duty levy on introduced in April last year.
The measure was introduced by the George Osborne as Chancellor in an effort to support first-time buyers into home ownership.
However, figures from UK Finance show that between August and September 2017 there was a 10% fall in the number of mortgages provided to first-time buyers.
In the year to September 2017 the figure fell by 1%. The Royal Institution for Chartered Surveyors has reported that a further 20% of respondents to its latest survey reported a fall in new buyer enquiries in October.
With demand for private rented housing likely only to increase, the RLA is calling on the Chancellor to use the budget to scrap the stamp duty levy.
David Smith, RLA policy director, said: “The previous Chancellor introduced the stamp duty levy to support first-time buyers, yet the figures show this simply is not happening.
“Many of those looking for a place to live are facing a perfect storm – good landlords not prepared to invest in new homes to rent, whilst those same people are unable to access home ownership sectors.
“It is clear that the stamp duty levy is hurting but not working for anyone. It is time to scrap it.”