Snap up your Buy to Let now or pay the Stamp Duty price

Chancellor George Osborne landed buy-to-let landlords another shock today by announcing a 3 per cent stamp duty surcharge on property purchases from 1 April 2016.

The addition of a 3 per cent extra charge for buy-to-let and second homes on all stamp duty bands above a £40,000 starting level will almost treble the bill for buying a £275,000 home - hiking it from £3,750 to £10,800. 

Delivering his Autumn Statement, Osborne said: 'Frankly, people buying a home to let should not be squeezing out families who can't afford a home to buy. So I am introducing new rates of stamp duty that will be three per cent higher on the purchase of additional properties like buy-to-lets and second homes.'

Property experts have warned that the move could distort the housing market, with a rush of buy-to-let and second home purchases before the start of April.

It was described as 'catastrophic news for the private rental sector' by David Cox, the head of the Association of Residential Letting Agents.

The new surcharge on stamp duty for landlords and those buying second homes will raise £1billion for Treasury by 2021, Mr Osborne claimed.

He added: 'It will be introduced from April next year and we'll consult on the details so that corporate property development isn't affected.

'This extra stamp duty raises almost a billion pounds by 2021 – and we'll reinvest some of that money in local communities in London and places like Cornwall which are being priced out of home ownership.'