Rishi Sunak has announced one of the biggest changes to the property market in recent years.
He has cut stamp duty on all properties up to £500,000 for anyone buying their main home, an investment property or a holiday home.
In this article, we explore what this means for property investors and how to take advantage of this recent announcement.
Read on to find out more or click a jump link below to skip to a chapter that interests you.
- When Does It Take Effect?
- Who Benefits?
- Does This Affect Property Investors?
- Will This Affect House Prices?
When Does It Take Effect?
In an attempt to stimulate the property market which has been hit hard by the Coronavirus pandemic, the cut will be immediate and will apply to all properties in England and Wales.
The holiday will last until March 2021, giving home buyers plenty of time to find their dream property.
9 out of 10 people will benefit from this saving, with an average stamp duty bill falling by £4,500.
For those buying at or over the £500,000 threshold, they will save a whopping £15,000!
The move has been well received by both home buyers and industry experts and will help drive the property market towards a more sustainable recovery.
Does This Affect Property Investors?
Investors and 2nd home buyers will also benefit from the cut, although they will still have to pay the 3% surcharge on their investment properties.
There is hope this will reignite the buy-to-let market, which has slowed down over the years due to additional tax charges imposed on landlords.
Will This Affect House Prices?
There is still some debate between industry experts on the effect the holiday will have on house prices.
There has been a consensus that property prices will fall around 5% by the end of the year.
With the introduction of this cut, there has been a divide between those saying it will help to keep house prices the same or even increase as demand increases; and those who think it won’t have an impact on falling prices, and perhaps even more so once the holiday ends.
Whilst the true effect on the property market will not be known until the holiday comes to an end next year, in the meantime 90% of buyers can and will benefit from this cut, which can only be a positive outcome!
IMPORTANT: Mortgages for Yacht Crew does not provide advice in relation to savings and investments. This article is intended for discussion only and does not propose financial advice in any way, and therefore should not be construed as such. Your property may be repossessed if you do not keep up with mortgage repayments.