Earlier this month, we outlined our key asks of the government in our Budget submission, ahead of Monday 29th October.
Here, we break down the document to run through what we believe the government could do to support you, the residential landlords out there offering vital homes to let. In this article, we take a closer look at what we are calling for when it comes to stamp duty, buying homes and sitting tenants.
The RLA is calling for the Government to enable landlords to reclaim the 3% additional stamp duty when they buy a home from another landlord and keep the sitting tenants-or when landlords sell a property to a sitting tenant.
The RLA believe that using stamp duty landlord tax to encourage sales to sitting tenants would help fulfil a central government objective, that is to support people who are wanting to transition from renting to home ownership.
Generally, it is easier for landlords to sell a home without the tenants in situ, because this gives new landlords a fresh start as well as opening up the sale to would-be owner occupiers.
By allowing landlords to reclaim the 3% additional stamp duty, this would offer them an alternative to evicting tenants, and also helps the Government to meet its commitment to keeping people in rental homes for longer.
By supporting those landlords who are prepared to sell a property to the tenant who is living there, it would also help meet its commitments to first time buyers.
Currently, there is already a process in place to refund stamp duty levies to those who buy a new house and only sell their existing home after the sale goes through. This is something that could be extended to landlords selling to tenants.
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