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.
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|
|East of England||£5,395||11|
|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.