The Chancellor gave first-time buyers an early Christmas present in his Autumn Budget, with the announcement of changes in Stamp Duty Land Tax. His decision to change the rates means the 95% of first-time buyers would see their rate of stamp duty reduced, and 80% would end up paying nothing at all. Mr Hammond suggested that the abolition of the tax for homes under £300,000 could help the property market.
The Royal Institution of Chartered Surveyors recently conducted a snapshot survey to see the initial impact of these changes. Simon Rubinsohn, RICS Chief Economist, stated, “It is perhaps not surprising that the headline indicators for both prices and activity are subdued as Christmas approaches. But once again the feedback we are receiving from respondents points to quite marked differences in trends across the country.”
The news headlines depict a time of doom and gloom in the housing market at present; but although the reports and surveys give an overall representation, they are unable to give you a true overview of what each estate agent in their area is experiencing.
Times are tough, there is no denying that fact; there is a lack of movement in the market place, but that doesn’t mean that we are unable to navigate around it. Our team work tirelessly to see a positive outcome for all our vendors, whilst utilising all our contacts in the area to source that irresistible property for buyers.
We’re not the only ones who believe there is light in this tough market. “We do expect the Government’s first-time buyer Stamp Duty changes to provide some stimulus to demand, particularly in London and the south-east where the impact is greatest,” said Russell Galley, Head of the Halifax Community Bank.
What are the new Stamp Duty Land Tax rates?
0 – £125,000 0%
£125,001 – £250k 2%
£250,001 – £925k 5%
£925,001 – £1.5m 10%
You’ll have to pay 3% on top of the normal SDLTrates if buying a new residential property means you’ll own more than one.
Here is a great SDLT calculator to work out how much tax you’ll pay.
Although the news may be good for first-time buyers and those purchasing in the lower end of the market, those buying an average priced or above property in the Docklands may not be so happy with the increase in Stamp Duty Land Tax. But as we said, with everything property related, there are always regional variations.
We are privileged to work in such a desirable area within and surrounding the Docklands. Our property portfolio spans the spectrum of available properties, from houseboats and dockers’ cottages to Victorian town houses and converted warehouses.
Before you make any assumptions about how the changes to Stamp Duty or the market in general will affect you and your property, come and talk to our team, who will always give you a frank assessment.
Docklands Estate Agents Office – 60 Westferry Road, London E14 8JE – 020 7005 6080