Stamp Duty hikes for property investors have failed to dent their enthusiasm, according to a leading conveyancing firm.

Chancellor Rachel Reeves raised the rate from 3% to 5% on buy-to-let properties in the Budget on 30 October, to take effect from the next day.

And estate agents struggled to help property investors beat the deadline for lower Stamp Duty rates after the Budget.

The change means landlords are potentially paying thousands extra in stamp duty, or Stamp Duty and Land Tax to use its official name.

Minimal impact

But data from conveyancing firms LCF Residential has revealed that the government’s attempt to curtail buy-to-let and second home purchases has had minimal impact on the market.

Yorkshire-based LCF says that all the property transactions it was working on during the Budget, that were being bought by second home buyers and investors, have gone ahead as planned.

Adding an additional 2% onto this doesn’t appear to have made any difference to the market so far.”

Julie Davis, Head of LCF Residential (main picture), says: “People buying second homes or investment properties were already subject to a higher rate of stamp duty prior to the Budget, and adding an additional 2% onto this doesn’t appear to have made any difference to the market so far.

“Out of the dozens of transactions we were working on, that were being bought by buy-to-let investors and second home buyers, each one has still gone ahead as planned,” she says.

“The Treasury’s aim with these changes was to give first-time buyers and those looking to move home an advantage over second home buyers and landlords.”

Soon rates for first-time buyers rise when temporary relief ends, she says. In April the ‘nil rate’ Stamp Duty band for first-time buyers will go down from £425,000 to £300,000.