- Restrictions on shared ownership to be removed and planning system reformed to deliver more homes
- London Help-to-Buy scheme to offer interest-free loan worth up to 40% of the value of a newly built home
- Doubling the housing budget from 2018 to 2019 to deliver 400,000 new homes.
- First-time buyers will be able to get a 20% discount on 200,000 new Starter Homes
- Money raised from tax on people buying their second home will be used to help those struggling to buy their first home*
Looking at the statement detailed on the Government’s website (www.gov.uk) it is clear to see that there will be future investment in the house building sector which will be bolstered by initiatives such as the extension to the Help to Buy scheme.
However, the Chancellor also declared a new 3% surcharge on stamp duty for buy to let properties and second homes from April 2016.
While the extra money raised is an enormous and much needed boost to house building and home ownership, there is now concern with the rental market at the new levies.
The stamp duty surcharge will lift each band by 3%. That means that for properties worth between £125,000 and £250,000, where the stamp duty is 2%, buy-to-let landlords will pay 5%. For the average buy-to-let purchase of £184,000, they will pay an extra £5,520 from April 2016.**
Michael Clarke from our lettings office has commented that he has recently spoken to many people looking to buy a second home and take a dip into the buy to let market by becoming a landlord. If this is something you are considering it is vitally important to speak to Michael and his team who can effectively advise you on all aspects from purchasing a suitable property to the levels of property management that we offer and by securing your property before April 2016, you will avoid the extra levy.
As a consequence of this, we would also urge anyone who is thinking of selling their property to do so swiftly, as these investors will indeed be looking to secure their next investment property before April 2016.
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To discuss your next buy to let investment, please contact our lettings office on 01252 514000 or firstname.lastname@example.org where our experienced and friendly team will be happy to help.