Land Transaction Tax hiked for Welsh landlords
Landlords in Wales will see Land Transaction Tax (LTT) rise, with those purchasing high-value properties seeing a huge increase of 17% on current rates.
Land Transaction Tax (LTT) is the Welsh equivalent of Stamp Duty, with the Welsh Government announcing today that landlords face a one percentage point increase for every higher rate LTT band – a move that is being introduced with immediate effect.
The percentage point rise is the equivalent of 5% for properties valued at up to £180,000, rising to 17% for homes costing over £1.5 million.
The full breakdown of the higher LTT rates is outlined below:
- £0 - £180,000 – 5%
- More than £180,000 - £250,000 – 8.5%
- More than £250,000 - £400,000 – 10%
- More than £400,000 - £750,000 – 12.5%
- More than £750,000 – £1.5m - £15%
- Above £1.5m - 17%
The announcement, made by Finance Secretary Mark Drakeford in the Draft Budget for 2025/26, has been branding baffling by the NRLA, which said the move will stifle investment making it harder for renters to find a home.
NRLA Chief Executive Ben Beadle, said: “This move by Welsh Government will do nothing to help renters who are already struggling to find a home to rent.
“To discourage investment in the market with punitive taxation at a time when Wales needs many more homes for rent is a frankly baffling move.
“Today’s announcement will worsen the ongoing shortage of homes, narrow tenant choice, increase rents and cause misery for tenants.”
The NRLA provided evidence to the Finance Committee ahead of publication of the Draft Budget, emphasising the urgent need to address the Welsh housing crisis, noting the lack of new housing supply and the rising demand for private rented homes. For more inforation on the NRLA's ongoing campaigns work in Wales click here.
For the Draft Budget in full, click here.
