Reforms to Stamp Duty Land Tax rules, as announced in yesterday's (March 23rd) budget, have been welcomed by UK's property investment bodies.
Under new terms announced by chancellor George Osborne, the rate of Stamp Duty land Tax on purchases of multiple residential properties will be determined by the mean value of the dwellings purchased, subject to a minimum rate of one per cent.
Currently, the tax is paid as an aggregate value of the multiple dwellings.
The British Property Federation immediately welcomed the move, which follows a long campaign by the organisation for chances to be made.
"It will provide an important boost for the private rented sector and we hope will tip the balance in encouraging institutional funds into building homes. Using the average price is fairer and a welcome measure of support for those in need of rented housing," Ian Fletcher, director of policy at the BPF, said.
Elsewhere, West End specialist estate agency LDG said that changes in planning regulations will increase stock levels for residential housing.