DURING December’s Autumn Statement, Chancellor George Osborne announced that the Stamp Duty Land tax will change, describing the system as a “badly designed tax on aspiration.”

This reform should have a positive impact on the private rental sector, according to Romans estate agents, and may lead to investors growing their portfolios during 2015.

Ricky Bhurji, investment portfolio manager at Romans, said until now home buyers and investors have paid Stamp Duty Land Tax (SDLT) on the entire purchase price of the residential property.

With the new reforms a progressive structure has been put in place, similar to income tax, which Osborne says will benefit 98 per cent of home purchasers – a tax cut worth £800m a year.

Ricky said: “The reforms have been welcomed by the majority of buyers and investors.

“They offer a much fairer system to how Stamp Duty Land Tax is calculated.

“The reforms offer private landlords lower costs when they buy investment property, making buy-to-let investment more manageable from the outset.

“I believe this will not only attract more people to invest in property during 2015, but also tempt existing landlords to grow their portfolios.

“This, in turn, will result in more properties coming onto the rental market, offering tenants in our area more choice.”

The new reforms are: No SDLT payable at all on properties up to £125,000.

The first £125,000 on properties to be free of SDLT, then payable at two per cent payable on the portion up to £250,000.

It is then payable at five per cent on the portion up to £925,000 and payable at 10per cent on the portion up to £1.5million.

It is then payable at 12 per cent on the portion over £1.5million Ricky said the majority of investors in the South East purchase property priced between £200,000 and £300,000 and this bracket offers some of the best Stamp Duty savings with the new reforms.

He said if you bought three properties priced at £275,000 each, with the new reforms you will pay £11,250 in Stamp Duty Land Tax, Making a huge saving of £13,500.

“The savings landlords can now make on Stamp Duty Land Tax will also mean they have more budget for either buying a higher specification property, or making property improvements and general wear and tear maintenance – another positive for tenants,” said Ricky.