Survey shows home buyers are in favour of second home levy

Survey shows home buyers are in favour of second home levy

Many homeowners across the UK believe it is only fair that landlords are charged extra on top of their Stamp Duty payments, according to a new survey.

From the start of this month, landlords across the UK have had to pay an additional three per cent levy on top of their Stamp Duty tax when investing in properties. When this was announced in November, it was a change that was met with anger from the buy-to-let sector. 

However, the poll, conducted by YouGov for the HomeOwners Alliance and BLP Insurance, shows that many people looking to get on the ladder themselves back this additional charge for rental investors. 

People looking to get onto the property ladder are often priced out of purchasing their own homes by investors, who have more spending power, and can drive up the price of property. As a result, the poll shows that as many as 47 per cent of buyers support the new Stamp Duty levy, while only 18 per cent oppose it. It means more than twice as many back the levy as oppose it.

Supporters of the levy believe that it is a good way to give new buyers and second-steppers the chance to be more competitive, as it landlords that now find themselves priced out by the additional costs. 

"The buy-to-let market is slowly destroying the overall housing market and making affordable properties less available for those wanting to own a home as their principal place of residence," one respondent to the survey insisted. 

This was backed by Paula Higgins, chief executive of the HomeOwners Alliance, who said the levy serves a purpose, allowing more young people across the UK to realise that dream of owning their own home.

However, those who oppose the new levy, mostly people who wanted to invest in a booming rental market, said that the new taxation scheme means they are being unfairly punished for choosing to put their money into the property sector. 

"I have been saving for five years to be able to afford to purchase an investment property. This change has now meant that it is not feasible for me to do so. It is unfair to penalise people who work hard and save," said another respondent.