Back in July Chancellor, Rishi Sunak announced that the Stamp Duty threshold would increase from £125,000 to £500,000, until 31st March 2021.

The Stamp Duty changes apply to all residential purchases and will benefit all types of buyer.

According to the Chancellor, this will reduce the average Stamp Duty bill by around £4,500. But despite the changes affecting all types of buyer, there will still be a disparity when it comes to landlords, which we look into below.

For reference, before the changes the standard SDLT rates were:

Property value Stamp Duty rate

Up to £125,000 0%

£125,001 – £250,000 2%

£250,001 – £925,000 5%

£925,001 – £1.5m 10%

>£1.5m 12%

Previously the threshold was £300,000 for first time buyers, who now benefit from the increased threshold like home movers.

The new SDLT rates are:

Property value Stamp Duty rate

Up to £500,000 0%

£500,001 – £925,000 5%

£925,001 – £1.5m 10%

>£1.5m 12%

What about landlords?

If you’re buying additional properties, whether to let or not, you have had to pay an extra 3% in SDLT since April. Now, despite having the benefit of the increase in the SDLT threshold, you will still have to pay the 3% surcharge.

So, if you’re a landlord purchasing an additional property – classed as owning more than one property, including your main home – you will pay 3% Stamp Duty for all purchases between £40,000-£500,000.

What’s the real impact on landlords?

If your investment properties tend to be in the £125,000-£500,000 price range, the Stamp Duty savings will be of interest to you.

On a £500,000 purchase that completes before SDLT reverts back to its previous rates, you will pay 50% less Stamp duty. That’s £15,000 instead of £30,000, a significant saving.

If on the other hand, like most landlords in Burnley, you buy properties valued up to £125,000, there will be no savings at all. Which of course means the Stamp Duty holiday has no impact on you at all.

So, it depends on your strategy. It may even be worth contemplating changing up your strategy in the short term. For example, buying a larger property to convert into a HMO (House of Multiple Occupation) or single units may now seem more attractive.

If your current strategy fits this mould or you do tend to opt for higher priced investments, then these Stamp Duty changes may be a reason to accelerate your search for the next addition to your portfolio.

The Stamp Duty holiday represents an opportunity to save money on large purchases, such as entire buildings of flats, buildings ripe for conversion, large renovation projects and as we’ve mentioned, HMO’s.

There could also be opportunities for groups of smaller landlords to team up to take on a large project by pooling their resources to take advantage of the holiday while it lasts.

E&M Property Solutions

We’re a dynamic estate agent and lettings agent in Burnley. We cater for all types of tenant – corporate businesses, housing benefit claimants, workers, and professionals. We offer single lets or rooms in HMO’s.

As investors ourselves we’re experts in the lettings business and specialists in HMO’s. We can take care of everything for landlords, even large-scale refurbishments, maintenance and furnishing when required, if you want that level of service.

You can see our available listings here to see how we market our properties and you can contact our expert lettings team to find out how we can help you on 01282 711560, or via email –

Let us help you find your next investment and maximise your return. It’s time to take advantage of this opportunity while it lasts.