stamp duty
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Associations & Bodies
Straight talking
Marc Da Silva asks the Managing Director of ARLA about the new three per cent SDLT surcharge for buy-to-let and second homes and tax relief change for landlords.
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Features
Auctions under the hammer
What sort of year did the industry enjoy (or not) during 2015 and what will 2016 hold? Nigel Lewis reports.
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Latest property news
Stamp Duty: the hidden issues
The new surcharge on properties purchased as second homes or as a buy-to-let has caused disbelief and fury – but there is more to it than meets the eye. David Gibbs (left), Taxation Partner at London based Alliotts accountants has the informed view, “The consultation paper makes clear that the proposed Stamp Duty charge is an additional three per cent on the whole of the purchase price. For example under the current rules, Stamp Duty on a second property costing £200,000 is £1,500. From 1st April 2016 this will rise to £7,500 – a 500 per cent hike. The draft rules are very tightly drawn so that the additional rate applies if ‘at the end of the day of the transaction’ an individual owns more than one property. “There are exceptions. If you are replacing your main home you are exempt from the charge. So if for example, you own a second property and purchase a new ‘main home’ then the additional charge won’t apply. Buyer beware – the old home must have been sold by the end of the same day that the new home is purchased. The additional rate will apply if it is. There is a proposal…
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Latest property news
Mortgage chief calls stamp duty hike ‘political stunt’
George Osborne’s decision to raise stamp duty for buy-to-let landlords has been dismissed as a “political stunt” by Managing Director of Vere Mortgages, part of deVere Group, one of the world’s largest independent financial advisory organisations. The Chancellor announced an additional 3 per cent stamp duty on second homes and buy-to-let properties in his Autumn Statement, adding thousands of pounds in tax. A property worth £275,000 will currently cost £3,750 in stamp duty but will cost £10,800 from next April when the tax rise comes into play. Buy-to-let is increasing and is currently at the highest level since before the financial crash in 2008. Rather than dampen the buy-to-let market and free up much needed properties for first-time buyers, Mike Coady (left), who heads deVere Mortgages, believes that the clampdown on buy-to-let investors will be “ineffective for its purported aims” of raising cash to help first-time buyers and paying for more affordable housing. Describing the tax measure as “something of a political stunt”, Coady thinks that the Government’s desire to be seen to be acting on this “emotive and topical issue” by appealing to the “politics of envy” with buy-to-let landlords and second homeowner the targets, will not just “trigger…
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Housing Market
Property transactions go from ‘strength to strength’
Residential property sales in the UK hit an 18-month high in August, following a 3.1 per cent month-on-month rise, the latest figures published by HMRC have revealed. The seasonally adjusted data shows that 106,480 property transactions took place in August – more than any month since February 2014. It is the third month in succession the home sales of more than 100,000 have been recorded, which is welcome news for agents. But sales still remain significantly below the monthly sales of close to 150,000 recorded at the height of the property boom in 2006. The seasonally adjusted estimate of the number of residential property transactions in August rose by 5.7 per cent compared with the corresponding month last year. Peter Rollings (left) CEO of Marsh & Parsons, commented, “Taking into account seasonal adjustment, property sales are going from strength to strength, and showing great improvement from this time last year. “With the spectre of higher interest rates being kept at bay, buyer demand is in full swing and summer sales have continued to blossom in August. After slightly fewer home sales than we would expect in a typical July, buyers last month were showing a new enthusiasm and readiness to…
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Latest property news
Stamp duty changes save homebuyers £701m
The Stamp Duty Land Tax reforms that were introduced in December last year have saved UK homeowners £701million in the six months since the changes came into force, according to myhomemove. The Government’s estimate that the changes to how stamp duty is levied has cut the tax for 98 per cent of people purchasing homes under £937,500, is supported by the research carried out by the conveyancing service provider, which found that since the reforms each house buyer below this level has saved an average of £1,400. “The stamp duty reforms have saved UK home buyers a significant amount of money since its introduction and provided an important boost to the property market, just as house transactions were starting to slow down in the run up to the General Election,” said Doug Crawford, CEO of myhomemove. He points out that the changes have had a particularly positive impact on those struggling the most to get onto the property ladder, including first-time-buyers, as they can now save more money towards a deposit for their purchase. Crawford (left) continued, “Under the old ‘slab’ system, there was a substantial increase in price at the stamp duty thresholds, which the reforms have reduced significantly,…
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Housing Market
Significant rise in residential property transactions
There has been a sharp increase in the volume of residential property transactions in the UK in the last five years, according to Ludlow Thompson. The company report that transactions have risen by 37 per cent in the last five years, from 878,720 in 2010-11 to over 1.2 million in 2014-15, helping to boost the wider economy. HM Revenue and Customs data reveals that over £10 billion has been raised in revenue from stamp duty on property and land over the past 12 months, which is more than capital gains tax and inheritance tax collectively. Stephen Ludlow, the company’s Chairman, commented, “Not only does the increased activity show that the residential property market is booming, the increased revenue from stamp duty is hugely beneficial in putting the UK on a firmer financial footing.” Last week, HMRC data revealed that the number of residential property transactions reached 100,790 in March, down 2.4 per cent compared to the corresponding month in 2014. “House sale completions are limping along as we approach the final furlongs before the election,” said Adrian Gill (left), Director of Your Move and Reeds Rains estate agents.” But while many prospective buyers are currently dragging their heels, Gill expects…
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Housing Market
Ed’s last stand: “a load of cobblers”
General Elections bring out the opinions of the electorate and property people have been more than forthcoming in these last days before the big election day on 7th May. Naomi Heaton (left), CEO of London Central Portfolio says that Ed Miliband’s “last stand” is “a load of cobblers”. Among her points are: “The latest Labour pledge is to abolish stamp duty for first-time buyers buying homes worth up to £300,000 for the next three years. They have said that it will benefit nine in 10 such buyers to the tune of £5,000. Rubbish. “Labour is clearly very bad at its sums, which is why, of course, we are so worried about them running the economy. “The average purchase price for a first time buyer outside London is £137,120, (Halifax). Following the Stamp Duty reforms introduced by the Conservative coalition last December, the Stamp Duty charge for buyers at this level is just £242. This is what the Labour policy would save, not £5,000. “If we look at the country as a whole, including London, the average price for a first time buyer, is £171,870. Again, due to the recent reforms, Labour would be knocking off £937 off their purchase costs,…
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Agencies & People
Resi Roundtable
Let Alliance invited Chester agents to meet to discuss current issues in the property market. Sheila Manchester reports.
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Features
Manifestos, markets and mansions
Election fever is here. The countdown has begun. Jeremy Leaf reviews pre-manifesto statements to see what could happen on 7th May.
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