Last Updated: 03/12/2015 11:34:36 Tags: Autumn Statement
This year’s Autumn’s statement revealed several changes to the UK’s housing sector – mainly aimed at would-be buyers who are trying to get onto the housing ladder.
As part of these plans the Chancellor stated that the housing budget would be doubled to £2bn in a year, which will fund 400,000 affordable new homes by the end of the decade.
More Housing Association tenants will also have the right to buy their properties.
Property investors – including landlords were badly hit by this year’s budget as it was announced that a stamp duty levy of 3% would be added to each investment property purchased after 1st April 2016.
The new stamp duty changes are:
* Property purchase of £40,000 to £125,000 – Stamp Duty will be levied at 3% (currently 0%)
* Up to £250,000 – 5% (currently 2%)
* Up to £925,000 – 8% (currently 5%)
* Up to £1.5m – 13% (currently 10%)
* Over £1.5m – 15% (currently 12%)
Other changes concerning landlords will be the amount of time they have to settle government property related charges - currently investors have up to 30 days to settle Stamp Duty charges this will be reduced to 14 days as from April 2016. As well as having only one month to settle a Capital gains bill relating to a sale of an investment property.
The London Help-to-Buy scheme - from early next year the government has pledged that they will increase the upper limit of equity loans, so that buyers in London can access from 20% to 40%. Also people living in London will be able to have access to an interest-free loans worth up to 40% of the value of a newly built home – homebuyers will then need to secure a mortgage of up to 55 per cent to cover the rest.
If you would like to find out more about the proposed changes then why not come into one of our local branches or call us on 0208 946100.