The average stamp duty payment on buy-to-let (BTL) homes has increased by £11,848 in England, and almost 1,000% higher than that paid by primary homebuyers, research from Revolution Brokers finds.
In April 2016, the UK Government sought to place property market power back into the hands of homebuyers by raising stamp duty prices BTL homes in England.
This brought the average stamp duty payment on a BTL in England from £1,953 to a whopping £8,689 within a month – an increase of 345%.
Today, the average stamp duty paid on a BTL purchase has climbed to £13,801 – a 607% increase compared to the cost prior to the government changes and 59% more than the initial cost once these changes were originally implemented.
With such a significant stamp duty bill, landlords and investors purchasing a BTL property in England will pay 183% more in SDLT compared to the cost paid by a regular homeowner (£4,876).
Which areas have the highest stamp duty bills?
Regionally, the biggest stamp duty premiums are found in the North East where the cost is a remarkable 777% higher on a BTL investment than for those purchasing a first home.
This is followed by Yorkshire & the Humber (401%), the North West (384%), East Midlands (313%), and West Midlands (312%).
But despite these significant costs found across England, Revolution found they’re not as high as the BTL stamp duty premiums paid in the other UK nations, under the scheme’s various other forms.
In Northern Ireland, for instance, the stamp duty premium paid on a rental property currently sits at an astonishing 624% verses that paid on an initial house purchase.
The gap is even bigger still in Wales and Scotland, coming at 849% and 997% respectively.
Almas Uddin, Revolution Brokers’ founding director, comments: “When the stamp duty rules were changed in 2016, it was a clear move by the Government to try and deter landlords from snapping up property that could, in theory, otherwise be bought by a regular or first-time buyer.”
“But despite buy-to-let properties now commanding a hefty stamp duty premium regardless of where you’re looking to purchase, there is still a healthy appetite for investment within the sector and it remains a vital cog in the UK housing market, providing rental homes for the millions who require them.”
|Table shows SDLT averages for first homes and buy-to-let homes in the UK, alongside £ and % difference.
||Stamp duty type
||AveHP - Mar 2022
||Single property - stamp duty
||Additional property - stamp duty
Yorkshire and the Humber
|West Midlands region
|East of England