The government's buy-to-let stamp duty increase will cost landlords the equivalent of 11 months' rental income

Emma Haslett
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The Treasury is preparing to hand over controls over buy-to-let mortgages to the Bank of England (Source: Getty)

George Osborne's hike of stamp duty on buy-to-let properties could cost landlords the equivalent of 11 months' income, new research has suggested.

The Countrywide Lettings Index suggested that the three per cent rate will mean a 0.2 per cent drop in yields - the equivalent of 11 months' income, when you take into account borrowing costs.

Those in the South West and North East will be hit hardest, with the average landlord losing out on 14 and 12 months of income respectively, while those in the North West will be less burdened, with stamp duty equivalent to eight months' income.

Read more: This is not a crisis of home ownership, it's a housing crisis

The new rules are due to come in April next year, but have been heavily criticised by landlords.

Region Average stamp duty from April Months' income lost due to change
London £15,452 11
South East £6,743 11
South West £5,196 14
East Midlands £3,133 10
East of England £5,395 11
North East £3,260 12
North West £2,759 8
West Midlands £3,408 10
Yorks & Humber £3,172 11

The news comes after George Osborne prepares to launch a consultation on handing tighter controls over the buy-to-let market to the Bank of England.

Earlier this month, the Bank of England highlighted risks "arising from rapid growth in buy-to-let mortgage lending", after the market for buy-to-let mortgages increased by 10 per cent in the first nine months of the year.

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