01 Dec Autumn Statement: What does it mean for the property market
In a long speech yesterday, Chancellor George Osborne revealed his financial game plan for the coming years. We help you decipher what it means for you and the property market.
George Osborne is hoping to raise an additional £1billion for the Treasury by 2021 by charging those in England and Wales a 3% surcharge on each stamp duty band, from April 2016. It is hoped that up to £60million of the money raised will be used to help home buyers in England where property prices have been driven up by a rising popularity in holiday homes.
The average buy-to-let purchase is currently £184,000, currently the stamp duty band for this property is 2% however buy-to-let landlords will soon have to pay 5%. Although, If you are a commercial property investor, with more than 15 properties it is expected that you will be exempt from the new charges.
The additional funds in the treasury will be used to encourage house builders to construct starter homes, offered at a 20% discount on properties up to £250,000 outside London. The aim is to encourage more long term renters to shift towards purchasing a home and reduce the housing benefits bill.
If you are considering purchasing a buy-to-let property it would be wise to act before April to save on the additional stamp duty tax. If you would like more advice on how this may impact you, please contact the Watsons team.
Documents: Link to full Autumn Statement and Spending Review documents via HM Treasury