Autumn budget 2017
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Latest property news
Stamp Duty cut: first-time buyers rejoice, but experts warn of price rises
If Chancellor Philip Hammond thought his Stamp Duty cut for first time buyers announced during yesterday’s Budget would get a unanimous thumbs up, then things definitely aren’t going to plan. Firstly Robert Cote, Chairman of the Office for Budget responsibility, revealed that his organisation thought the tax cut would push up prices by 0.3% and that “the main financial gainers will actually be people who already own properties, rather than first time buyers themselves”. Treasury Chief Secretary has subsequently dismissed the OBR’s prediction and just a “minor increase”. But Mark Hayward, Chief Executive of the National Association of Estate Agents (NAEA) (pictured, left) also sounded a note of caution saying that although overall it was a positive move, it would increase house prices by pushing up demand for first time buyer properties. “We have seen this in areas where Help to Buy is offered, as it attracts a great deal of interest from first time buyers,” he said. Sarah Beeny, TV presenter and founder of online agent Tepilo (pictured, right), also weighed in, saying she thought the measures would not make a huge difference to the market. “Cutting stamp duty for first time buyers is unlikely to do much –…
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Latest property news
Budget 2017 – big news for first time buyers, landlords and tenants
Chancellor Philip Hammond has made several key housing announcements that will impact both the sales and lettings sectors of industry and which he said was part of a £44 billion package. “House prices are increasingly out of reach for many and it takes too long to save for a deposit and rent absorbs too much of people’s ability to save for a deposit,” he said during his speech. The most important of these is that Stamp Duty is to be abolished for first time buyers and, in more expensive areas of the UK such as London, the first £300,000 of a property’s sale value exempted from Stamp Duty, if priced less than £500,000. This, the chancellor said, would remove any Stamp Duty obligations for 80% of first time buyers. Other measures included enabling councils to charge a 100% council tax premium on empty properties – which may force many landlords to either rent out their properties or sell them. “Penalising empty home owners with a 100% council tax premium is unlikely to really be a deterrent for people who are likely to be high net worth,” says Nick Leeming, Chairman of Jackson-Stops. “If they don’t need the rent, this penalty…
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