East Midlands to be hit by ‘granny annexe tax’

New research by Mobile Annexe Ltd has revealed searches for ‘stamp duty annexe’ rocketed 140% in Northamptonshire following Jeremy Hunt’s plans to impose a ‘granny annexe tax’ as part of his stamp duty crackdown in March.

There were also big rises in Derbyshire (75%), Lincolnshire (67%), Leicestershire (43%), and Nottinghamshire (29%).

The massive increase in people looking for information suggests thousands of people in The East Midlands will be hit by the abolition of Multiple Dwellings Relief, which has the potential to set home buyers back by tens of thousands of pounds when it comes into play next month.

Building a mobile annexe previously allowed people to gain stamp duty tax relief when purchasing a property, provided the construction of the annexe was started on the day of completion, but the new change will stop this.

Ranking: County: % change in searches for ‘stamp duty annexe’, and 26 related key words after Jeremy Hunt's announcement
1 Northamptonshire 140
2 Derbyshire 75
3 Lincolnshire 67
4 Leicestershire 43
5 Nottinghamshire 29

“The fact is, at a time when people are feeling the additional strain of the cost-of-living crisis, a way to save money has been removed,” said Gary Clayden-Smith from Mobile Annexe Ltd.

“The research shows that the change has people worried, they’re looking for solutions, and things aren’t looking good.

“And that’s forgetting the practical benefits of an annexe, for example buying a smaller property with less bedrooms, but compensating for it with an annexe in the garden. Or using an annexe to allow older loved one’s support and independence, without the need for a care home.

“Overall, the change not only hurt people’s finances during a cost-of-living crisis, but also make it more difficult to care for the people we love.”