A new higher rate of Stamp Duty for buy-to-let landlords has been announced by George Osborne in today’s Autumn Spending Review.

The Chancellor said that those buying a property for reasons other than as their residential home – including buy-to-let and second homes – will be subject to Stamp Duty at 3% above the usual rate. The increase will begin in April 2016.

The blow to landlords comes after the announcement in the summer that mortgage interest tax relief would be cut for landlords.

Jonathan Hopper, managing director of buying agent Garrington Property Finders, said that landlords are under attack again.

“It’s Osborne’s buy-to-let double whammy. The buy-to-let sector is only just recovering from the last Budget announcement cutting mortgage interest tax relief. Now, new buy-to-let landlords are going to get sledge-hammered with a bigger Stamp Duty tax bill.”

David Cox, managing director of Association of Residential Letting Agents (ARLA), was equally unimpressed: “The news in today’s Autumn Statement that the Chancellor will increase Stamp Duty tax on buy-to-let properties by 3% in April 2016 is catastrophic for the private rental sector, especially following the recent changes to mortgage interest tax relief and the annual wear and tear allowance. Increasing tax for landlords will increase rents and reduce property standards for tenants.

“To make owning a buy-to-let property financially viable, landlords will need to pass on the increased Stamp Duty costs to tenants, who will in turn see less spent on maintaining their property and of course see increased rents.”