You may remember us speaking about Stamp Duty in the past and how it is quite the obstacle to overcome for many clients purchasing houses of a certain value. In our area it is not unusual to sell a property for £1.25m – the stamp duty on this value would be £68,750 taking total expenditure to £1,318,000 before any additions or improvements. And, if you already own one property, then purchasing a further property at £1.25m will mean stamp duty of an extra 3% – a total of £106,250.
This is something that was addressed a little while back to help people buying lower value properties to gain relief from Stamp Duty. However, it is still a restrictive factor for those people wishing to take their next step on the property ladder by stretching their budgets.
The issue of Stamp Duty has remained in the news and in fact, the most recent abolition of Stamp Duty on properties up to £125,000 has helped nearly 120,000 households across the UK.
At the beginning of October the Prime Minister announced that foreign investors will be required to pay more in order to buy a property in the UK. With the housing crisis fast becoming the biggest challenge in a generation, she promised to create a level playing field between foreign investors and British buyers.
This latest announcement looks like it will be a double edged sword. On the one hand it will help British buyers looking to step up or onto the property ladder by reducing the amount of competition for properties.
However, foreign investment has played an important part in many new-build schemes. This funding has enabled councils and developers to build more houses for the very people who are hoping to benefit from the decline in foreign investors.
The only way to address the housing crisis is to build the variety of houses for which there is a demand.
The introduction of a Stamp Duty surcharge for foreign investors will hopefully redress the balance – for many years there has been evidence that foreign investment has been pricing UK residents out of the property market – especially in London.
Obviously the supply of, and demand for, properties is something we are exposed to every day and here in Beaconsfield we have our own issues with the building of new properties – with specific reference to the Green Belt debate we are currently facing as a town.
Get in Touch
If you are looking to buy, sell or rent a property in and around the area make sure you contact your multi award winning estate agent for Beaconsfield and the surrounding areas by calling 01494 680018 or emailing us. You can also follow us on Facebook, Twitter, Instagram and Linkedin.
photo credit: Ruben Pinto