Budget hits second home buyers

6 March 2024

The Chancellor has announced that the government is abolishing stamp duty relief for people buying more than one dwelling.

Additionally, tax breaks will be scrapped which currently make it more profitable for second homeowners to let out their properties to holiday makers rather than to long-term tenants to rent.

These so-called short term lets can be arranged for events such as Royal Ascot, as well as leisure breaks and holidays.

Many property investors had turned to “furnished holiday lettings” after a clampdown on buy-to-let as it would still let landlords claim full mortgage interest relief and benefit from lower capital gains tax. These perks are set to disappear.

These landlords or second homeowners have been able to list their property on platforms such as Airbnb and claim full mortgage interest relief, unlike in the private residential sector. 

In a budget that was underwhelming about housing, the Chancellor also said £242m of levelling up funding would be channelled into supporting the building of 8,000 homes at Barking Riverside and Canary Wharf in east London.