Housing latest: Your update on politics and the private rented sector

2 Oct 2019 12:18 PM

MHCLG Does Not Collect Information on Proportion of Right to Buy Properties Now Owned by PRS Landlords

Clive Betts MP (Labour, Sheffield South East – Chair of the HCLG Select Committee) has received a response to his written question asking what recent estimate MHCLG has made of proportion of homes purchased under the right to buy schemes that are now owned by private landlords.

The Housing Minister, Esther McVey MP, responded:

“The Ministry of Housing, Communities and Local Government does not collect this information. Under the Right to Buy there are restrictions in place to discourage re-sale within 5 years of purchase, and mortgage providers and landlords may also place restrictions on letting in the terms of the sale.”

Number of SDLT Additional Dwellings Transactions Falls by 9%

HMRC has published the latest SDLT statistics. They can be accessed at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/835094/ASTP-Release-Bulletin-1819.pdf. Of note:

• There were 231,000 additional dwellings transactions in 2018-19, a decrease of 9% from 2017-18, although if devolution of SDLT to Wales is taken into account, the decrease is about 3%.
• Higher rates on additional dwellings (HRAD) receipts were £3,810 million in 2018-19, a decrease of 6% (£250 million) from 2017-18. Of this total, £1,675 million came from the additional 3% element (12% decrease from 2017-18).
• Additional dwellings transactions accounted for 22% of residential transactions and 46% of residential receipts (an increase of 2% from last year) in 2018-19. First time buyers’ relief (FTBR) is thought to have influenced this change.
• The region with the highest proportion of transactions which were additional dwellings was London, with 28%. The South East had the lowest proportion at 19%. This followed a similar pattern to 2017-18. Northern Ireland had the highest proportion of residential receipts from HRAD transactions, at 65% (similar to that in 2017-18).
• 62% of additional dwellings transactions were valued below £250,000 in 2018-19, accounting for 24% of residential SDLT transactions and 71% of residential receipts within this price band. FTBR is thought to have influenced these changes, making more transactions liable to HRAD.
• 3% of additional dwellings transactions were valued above £1 million in 2018-19, accounting for 38% of HRAD receipts, and 20% of the 3% surcharge total receipts.

The report notes: “The announcement at Autumn Statement in 2015 of the introduction of the Additional Properties rates in April 2016 caused changes in taxpayer behaviour, where purchases were brought forward into the first quarter of 2016 so that they would not be liable for the higher rates. Caution is therefore advised when making comparisons in transaction counts between years.”