Bulk-buying funds who lease to state are exempt from new 10% stamp duty

Amendment to bill facilitates bulk-buying and renting to local authorities by institutional investors, despite Eurostat warning

The government introduced, on May 20, a new stamp duty rate of 10 per cent that applies to purchases of more than 10 houses.

Institutional funds bulk buying homes to lease to the state will avoid the new 10 per cent rate of stamp duty that was introduced to stop such investors buying up houses ahead of first-time buyers.

The new exemption raises questions over whether the government’s move to limit the ability of funds to bulk purchase houses will ultimately discourage investors from buying homes ahead of owner-occupiers.

The decision to waive the higher 10 per cent of ...