Speaking in today’s combined Spending Review and Autumn Statement, he claimed the stamp duty changes will raise £1bn by 2020.
This will come as another blow for buy-to-let landlords, who were told in the summer Budget that the amount of mortgage tax relief higher rate tax payers will be able to claim back will be cut from 45% to 20% from April 2017 to 2020.
Osborne said: “I am introducing new rates of stamp duty that will be 3% higher on the purchase of buy-to-lets and second homes.
“It will be introduced from April next year and we will consult on the details so corporate property development isn’t affected.
“Extra stamp duty will raise almost £1bn plans by 2020 and we will reinvest some of that money in London and places like Cornwall which are being priced out of homeownership.”
Osborne confirmed that the housebuilding budget has been doubled to £2bn per year to deliver 400,000 ‘affordable’ new homes to rent and buy by 2020.
The Chancellor also announced the launch of a London Help to Buy scheme which will offer Londoners with a 5% deposit an interest-free loan worth up to 40% of the value of new homes built.
He said: “The government will help address the housing crisis in our capital city with a new scheme: London Help to Buy.”
The Chancellor also spoke of predicted economic growth. He said the economy will grow by 2.4% in 2015 and 2016, 2.5% in 2017, 2.4% in 2018 and 2.3% in 2019 and 2020.
