Buy to Let lending is at a record level since the 2008 credit crunch with 40% Buy to Let mortgages entered in the last year, and with over 1000 Buy to Let products now available.
What will happen with the 3% stamp duty is the purchaser will factor this into the price they are prepared to pay.
Properties suitable for Buy to Let purchasers are likely to be first time buyers and Buy to Let investors. Buy to Let investors will continue to be better placed to offer on these properties and complete on transactions, having more cash and easier mortgage applications.
There is speculation that the Chancellor might restrict Buy to Let lending. Given a choice between such restriction and a 3% tax levy, we would prefer the 3% tax levy.
Buy to Let investment is an investment over the long term and adding a 3% transaction cost will be written off over the length of time the investor holds the property.
In summary, this is unwelcome but absolutely not catastrophic.