Now the dust has settled on the Autumn Budget, we look at one aspect more closely.
One of the big news stories from the Autumn Budget was the increase in stamp duty rates for those buying a second home. That change is already in place, and there are fears that some property deals will collapse due to the change.
Buying a home can be an expensive activity, and if you haven’t budgeted for an additional outlay, it can derail your plans. This is why there is genuine concern some property deals will collapse before the end of the year.
Sometimes, there is nothing you can do to prevent this, but we’re on hand to assist any party that has concerns about a deal which might be affected in this way.
Will the stamp duty rise change the lettings market?
Looking slightly ahead, there is a concern that the stamp duty rise will impact the lettings market, potentially causing grief to tenants.
Peter Stimson from MPowered Mortgages, spoke about this topic saying: “Buy-to-let landlords and second home owners were expecting another tax squeeze from the Chancellor. But what they got was a whack with a hammer. Not an increase in general taxation or the capital gains tax they pay when selling a rental property, but a whopping 2% uplift in the stamp duty payable when buying a home to rent out. A sector rendered fragile by successive tax raises and interest rate rises is now likely to be clinging on by its fingernails after the announcement.”
Peter continued by saying: “Fewer than one in 10 mortgage applications made this year were for a buy-to-let loan, less than half of what it was just a few years ago. That share is now likely to plunge further as would-be landlords run the numbers and decide they just don’t stack up. The irony is that it’s not just landlords who will feel the pain. A third of Britons don’t own their own home, and for many of them, renting privately is the only option. With rents already rising and the supply of rental properties about to be further disrupted, rents could now climb even higher. Far from solving the housing crisis, this, at least in the short term, could well exacerbate it.”
From those comments, some of the key points to consider are:
- Rental stock might fall further in the near future as more landlords decide against increasing their property portfolio
- If rental demand outstrips supply, market forces suggest rents will rise
In an ideal world, there is an argument that these factors represent good news for people looking to buy or sell their home. Of course, the reality is, even with assistance, a significant proportion of the population are not able to buy a home.
It is imperative that tenants are protected in the market, even if there is a desire to help as many people onto the property ladder as possible.
At Anthony Jones Properties, our experience in the local housing market means we know what people are looking for. Homeowners who are keen to sell should be aware of the fresh challenges they’ll face, but equally, there will always be movement in the market.
If you are looking to sell your home, we are here to assist you, so please get in touch.
We are here to help you move in and around Wynyard
If you are looking for help with any matter of the Wynyard property market, it is best to speak to property professionals. No one knows for sure what is going to happen next, so we won’t claim to have all the answers, but the Anthony Jones team is keen to help you as best we can. If you would like to contact us over housing matters, please call us today on 01740 807107.
