Bulk transactions should be encouraged, BPF says

News Category: Management

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Property buyers would have a greater incentive in the residential lettings sector if the government relaxes its stamp duty land tax (SDLT) charges on bulk purchases in the current climate, says the British Property Federation (BPF).

Investors currently have to pay SDLT at the top marginal rate in a linked transaction, because all the homes are taken into consideration.

Although properties under £175,000 are exempt from stamp duty charges until September 2nd, combined purchases worth over £500,000 would face a four per cent rate.

Peter Cosmetatos, director of finance and investments at the BPF, believes the government should change this in next month's Budget.

A tax at a marginal rate relevant to each individual unit would provide an incentive for professionals in the residential lettings sector to buy in bulk, he suggested.

Mr Cosmetatos explained: "People [would be] buying apartment blocks or rows of houses or large quantities of housing together, where they can manage them professionally and with greater proficiencies of scale."

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