Stamp duty hike on landlords to be imposed in just HOURS, Rachel Reeves announces

This change to the tax will be implemented from tomorrow, October 31, which means landlords have little time to react.

Reeves shared: "This will support over 130,000 additional transactions from people buying their first home, or moving home, over the next five years."

As a tax, stamp duty is an extra upfront cost those buying a home may have to pay.

Currently, first-time buyers are exempt from paying stamp duty on properties valued up to £425,000.

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Some 80 per cent of first-time buyers are not liable for any stamp duty, while only 14 per cent are required to pay a tax rate, Zoopla reports.

In 2022, the lower threshold for first-time was increased and was scheduled to revert to £300,000 in April of the coming year.

In her speech, Reeves noted the Government will “continue to support” first-time buyers but did not go into specifics.

With the Chancellor's announcement, analysts are preparing for a "rush" in property transactions as the stamp duty reform comes into effect.

Property expert Trevor Kearney shared his predictions for how the latest changes to the tax will impact the wider property marker.

He shared: "Historically, property has always performed better under a Labour government. But for the current government not to buck the trend, property reform on areas such as stamp duty needs to be a priority.

"Rachel Reeves’ decision to scrap stamp duty exemptions means we’re likely to see a rush to complete property transactions before the stamp duty changes come into effect.

"Ultimately, it’s going to make the rungs on the property ladder harder for first time buyers to reach, let alone climb. While the Government need to raise money, this shouldn’t be the area to try and do it through."

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Paresh Raja, CEO of Market Financial Solutions, believes the tax changes will "dampen" investor sentiment in the UK.

"As such, it’s up to lenders and brokers to work together to provide financial products that can help them navigate the evolving market conditions with confidence in the months ahead.," Raja said.

"The property investment landscape may have shifted, but through collaboration and innovation, there’s no reason why it can’t continue to thrive in the aftermath of today’s announcements."