Tue 15 Mar 2016
What's changing? From 1st April 2016 the Stamp Duty Land Tax (SDLT) is due to increase for most additional property purchases by 3% on homes in England, Wales and Northern Ireland. This applies to residential properties such as buy-to-let investments or second home purchases over £40,000.
For affected purchases the changes are as follows:
How might this affect the housing market?
According to the RICS (Royal Insttuate of Chartered Surveyors), they are expecting that house price increases may ease off over the coming months once the stamp duty rises kick in and investor buyers hold off buying more property.
However, this could be good news for first time buyers as the competition for property at the lower end of the market is likely to fall.
Looking further ahead RICS Chief Economist Simon Rubinsohn comments "While there remain significant doubts as to whether the Government’s plans to encourage a more robust development and construction pipeline will be sufficient to address the housing crisis, long-term price indications for the housing market remain strong, with respondents still expecting them to rise by a further 25% over the next five years.”
Should you need any clarification as to whether you will be affected by the SDLT rises, contact your financial advisor or contact any of our branches who can put you in touch with our independant financial advisor, Richard Lester.
"To all the staff members at John German, thank you for all your help and support over the last few months with the sale of our property. You made the whole process 'easier', and you were always happy to help us. A big thank you to Clare though on exchange of contracts day, hope it didn't cause you too much stress!"