UK hikes residential property taxes to ease demand for those squeezed out by house prices

Britain is to increase a tax on buy-to-let and second homes to ease demand for those squeezed out by house price rises, but early reactions from some analysts warned many undeterred investors will instead pass the cost on in higher rents.

Double-digit price rises in London last year and at the start of 2015 have led to criticism that individuals who snap up properties to rent them out have stopped would-be first-time buyers from getting a foot on the property ladder.

Yesterday, chancellor George Osborne, unveiling a raft of measures to boost revenues and cut spending, said he would introduce an additional 3% on the stamp duty property tax for second homes and buy-to-let properties from April.