Our friends at Buckley Frayne Estate agents have been telling us about the changes to stamp duty on property sales and the impact this will have on the sales and lettings market. They have a much clearer view than Revolution as we are an Apartment Block Management Company. It all changes this April so Mark has kindly summarised it below for us.
Mark Buckley writes:
Sales and the issues these changes cause
By now you may have heard of the changes to stamp duty introduced by the Chancellor in the latest budget.
If you are an investor landlord stamp duty (the tax paid on purchase) will increase by 3% of the sale price from 5th April 2016. For owner occupiers with no more than one property it will remain the same. On a typical second purchase of £200,000 it’s an increase in stamp duty from £1500 to £7500!
With regard to sales there has already been a significant increase in the number of investors looking to complete property purchases before the April deadline. We expect the number of available properties to fall dramatically over the next 2 months as investors rush to beat the deadline and this no doubt will push sale prices higher. If this article has made you wonder about selling or what your property is worth feel free to call or email me on 0161 236 0004 or firstname.lastname@example.org. We know all the Revolution blocks extremely well and where possible will be able to give a guide without even visiting the property albeit we would rather see each individual unit to be accurate.
Lettings and the issues these changes cause
In relation to lettings the stamp duty changes will have a very significant effect on increasing rental prices. This will be due to investors leaving the market and many new buyers being owner occupiers meaning there is less and less available stock to rent. I would predict rental price increases in the region of £50-£100PCM during 2016. It is proven to us that many landlords are letting their properties far below the real market rate. Given changes to tax rules around offsetting mortgage costs all landlords should assess their incomes. If you’re wondering about your income again I can give you an estimate over the phone or by email. It’s no obligation and no cost.