What Mortgage: Budget 2024: Labour hits landlords with stamp duty hike:

In the first Budget for the new Labour government, the Chancellor said the 2% increase to the stamp duty would come into effect from tomorrow. Buyers in the process of purchasing a second home will therefore immediately be hit by the tax.

Rachel Reeves said in her speech that increase would support more transactions from those buying their first home and movers. But mortgage brokers are concerned it could have a detrimental impact on the buy-to-let market and also property chains in which there is a second home purchase.

Harps Garcha, Director at Brooklyns Financial was speaking to Newspage. She said: "Tomorrow will feel like Halloween for some landlords facing last-minute challenges. Imagine needing to find an additional £10,000 on a £500,000 purchase - it's a huge ask. Some landlords have already exchanged and they are now asked to find the additional funds with no notice. What if they can't at the eleventh hour? 

This shift will undoubtedly discourage landlords from investing more into buy-to-let properties, which could lead to a reduced supply of rental properties, especially with an unprecedented number of landlords already selling."

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