Upcoming Stamp Duty Change may spur sales in short term

An expert says a change in Stamp Duty Land Tax, coming into effect on June 1, will alter how investors and landlords purchase properties.  

From June 1 there will be no more Multiple Dwellings Relief: currently in England and North Wales, when a purchase involves multiple dwellings (that is, more than one property), in either a single or linked transaction, the owner can benefit from a tax relief known as MDR.

For 13 years, investors and landlords have received a reduced tax rate when purchasing multiple-dwelling properties. These upcoming changes will increase the cost of buying for multi-unit purchases as the aggregate tax reverts to the full amount payable. 

With the deadline fast approaching, an auctioneer claims that there is a narrow window of opportunity for vendors to sell assets with the enticement of a relief in additional tax. 

Oliver Prior, auctioneer and national commercial director at Auction House, comments: "Landlords facing the abolishment of Multiple Dwellings Relief should seriously consider the auction route. Auction offers a streamlined process to sell properties quickly and with certainty, providing a viable solution for those looking to divest their portfolios efficiently and before June 1.”

Prior says this shift also presents an opportunity for new investors to increase their portfolio, with the possibility of more properties becoming available to purchase.