Apparently some astute investors have spotted this as RICS has reported a “lift in housing demand” and it has reported that since the announcement in November, 16% more chartered surveyors had reported a rise in new buyer enquiries, with surveyors citing a rush to beat April’s stamp duty rise as the reason.
The risk is that there will be a rush for buyers to complete their purchasers prior to 1st April in order to avoid the increase in Stamp Duty Land Tax (SDLT). This will clearly distort the figures in relation to residential property transactions for the first quarter and will no doubt lead to a slump thereafter.
Sellers should also be alert to the fact that after 1st April it may well be more difficult to sell properties in areas which are currently dominated by tenanted properties. This could be a blow to those properties located in areas which fell within HMRC’s previously designated “disadvantaged areas” and it will not be a surprise to see prices start to fall.
There are however many people out there who are totally unaware of the coming changes and may not even be aware that the surcharge will affect them. So the question is what are the changes and who will they affect buyers?
|Value of second property/buy to let (£)||Current SDLT (£)||SDLT from 1 April 2016 (£)||Increase in tax (£)|
The consultation period will continue until 1st February and the full details will be announced at the next budget. Whilst it is clear that this is set to impact upon buy-to let investors what is less clear is how this will impact upon other purchasers, for example:
Lupton Fawcett is a leading personal and commercial law firm in Yorkshire with highly experienced teams of Residential Property Solicitors at each of our offices.
So, if you are looking to purchase or sell a residential property in the West Yorkshire area, call one of our expert Residential Property Solicitors in Leeds. They have a detailed knowledge of the local property market and can help make the process of buying or selling your house as painless as possible.
We also have a similarly well-informed team of Sheffield Conveyancing Solicitors, ready to advise anyone looking to buy or sell residential property in Sheffield and South Yorkshire. And for those looking to move to or within North Yorkshire, our well-established team of York Conveyancing Solicitors will be able to offer you an informed insight into the area, guiding you throughout the conveyancing process.
For further help or advice on the contents of this article or Residential Property generally, please contact Residential Property Partner, Sarah Sargent at firstname.lastname@example.org.
Please note this information is provided by way of example and may not be complete and is certainly not intended to constitute legal advice. You should take bespoke advice for your circumstances.