Written By Dominic Stead, Property Director, My Future Living
Today, I am reflecting on the Chancellor’s surprise Spring budget decision to abolish multiple dwellings relief for Stamp Duty Land Tax – which applies when buyers make bulk house purchases.
From 1 June 2024 the relief which was originally introduced in 2011 to alleviate Stamp Duty Land Tax burdens when properties were purchased in bulk will no longer be applied.
The relief, which zero-rated bulk acquisitions, made purchases by investors of build to rent properties more affordable and it was instrumental in creating growth within the private rental market and providing crucial support to investors and developers to help them address the housing shortage.
As a registered property provider for retirees, I am concerned that abolishing this relief may give rise to some challenges and impact our sector’s growth and efficiency.
It also strikes me that it’s a move that seems completely incongruent with the government’s broader objective of increasing the number of affordable homes nationwide.
One major issue that has impeded our sector is the turnover of 16 housing ministers in the last 14 years. This lack of leadership continuity has hindered the successful implementation of strategies aimed at providing additional homes across the country.
Moving forward, we need a government that can provide a long-term vision for addressing the housing shortage effectively. We also need them to take a more holistic and integrated approach to housing policy and recognise housing as a fundamental component of our national infrastructure – something that is inextricably linked to people’s sense of self, health, and wellbeing.
Amidst these challenges, My Future Living remains committed to our mission of growing our portfolio of high-quality retirement properties.
The shortage of affordable rental properties across the country highlights the urgency of our work. We will continue to expand to ensure retirees have access to comfortable and secure living options they need.
While the changes to Stamp Duty Land Tax present challenges, they also reinforce the need for collaboration and innovation within the housing sector. It is clear the industry must work more closely with policymakers and stakeholders to shape housing policies that reflect the needs and aspirations of our communities and enable us to build a future where quality housing is accessible to all.
Source: UK Property Newsdesk
A Turning Point: the impact of abolishing Multiple Dwellings Relief on Housing
