New research by Revolution Brokers reveals that, since then, average stamp duty payments on buy-to-let homes have increased by £11,848 in England and that, in some parts of the UK, buy-to-let stamp duty costs are now almost 1,000% higher than that paid by primary homebuyers.
Prior to this change, the average stamp duty payment owed on a buy-to-let in England was £1,953. A month later in April 2016, immediately after the rules changes were announced, this increased to £8,689 - an immediate 345% increase in the stamp duty cost of a buy-to-let.
Today, the average stamp duty paid on a buy-to-let purchase has climbed to £13,801, a 607% increase compared to the cost prior to Government changes and 59% more than the initial cost once these changes were originally implemented.
The current average buy-to-let stamp duty bill of £13,801 means that purchasing a rental property today will see investors pay 183% more in SDLT compared to the cost paid by a regular homebuyer (£4,876).
Regionally, the biggest buy-to-let stamp duty premiums are found in the North East where the bill is a remarkable 777% higher on a buy-to-let investment than it is for those purchasing a primary residence.
This is followed by Yorkshire & Humber (401%), the North West (384%), East Midlands (313%), and West Midlands (312%).
Despite these significant premiums found across the English market, they’re not as high as the buy-to-let stamp duty premiums paid in the other UK nations, under the schemes various other guises.
In Northern Ireland, the stamp duty premium paid on a rental property currently sits at an astonishing 624% versus that paid on an initial house purchase, while in Wales (894%) Scotland (997%) the gap is even bigger still.
Almas Uddin, Founding Director of Revolution Brokers, commented: “When the stamp duty rules were changed in 2016, it was a clear move by the Government to try and deter landlords from snapping up property that could, in theory, otherwise be bought by a regular or first-time buyer.
"But despite buy-to-let properties now commanding a hefty stamp duty premium regardless of where you’re looking to purchase, there is still a healthy appetite for investment within the sector and it remains a vital cog in the UK housing market, providing rental homes for the millions who require them.”