George Osborne’s stamp duty raid on buy-to-let properties has hauled in more than £2.7 billion to the government’s coffers.
The tax raid is more than twice as much as officials were expecting to collect when the government slapped higher stamp duty rates on landlords and second home owners in April last year.
The government had expected to raise £1.3 billion from the tax increase in the first two years.
George Osborne’s stamp duty raid on buy-to-let properties has hauled in more than £2.7 billion to the government’s coffers
However, new figures from HM Revenue & Customs show it has raised more than double that in the first 18 months alone.
Mr Osborne, the former Chancellor, introduced the so-called ‘landlord tax’ to cool the booming buy-to-let market and to free up housing for first-time buyers.
In what critics labelled a ‘war against landlords’, this year he also stripped wealthy buy-to-let owners of the ability to claim higher rate tax relief on their mortgage interest payments.
While the policies had a damaging effect on buy-to-let transaction initially, there are signs that landlords are beginning to buy homes once more.
Figures from UK Finance, the banks’ trade body, show the number of landlords buying homes hit an 18-month high in August.
At the same time, first-time buyer house purchases are up just 8 per cent in the past year, according to UK Finance, the trade body for banks.
David Smith, policy director at trade body the Residential Landlords Association, said: ‘It is fairly obvious