New buy-to-let tax drives up UK house prices

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AN upcoming stamp duty surcharge is expected to see house prices rise across the UK, as buy-to-let investors seek to capitalise on lower rates before the 3 per cent charge comes into play in April 2016.

After the Chancellor’s autumn statement which announced the stamp duty charge, house prices rose sharply in November and first-time buyers are anticipated to face great difficulty in competing with the wealthier investors, only finding respite once the new tax comes into effect.

Naturally, buy-to-let investors are mounting a legal challenge against the reforms which would see them pay more money, but accountants are also concerned that the greatest impact will be felt by smaller investors with one or two additional properties.

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Tenants are expected to be hit with higher rents while wealthy landlords and large companies will remain untouched.

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