Stamp duty increases from 1st April 2016
3 December 2015
Stamp duty increases from 1st April 2016The early seller will catch the investor in 2016
The Government’s surprise announcement that it plans to raise Stamp Duty by an additional 3% on buy-to-let and second homes from the beginning of April will cost investment buyers significantly more.
We anticipate an upsurge in investor interest in January and February as a result, with quick decision making likely so that their next investment properties can be secured before the deadline. This in turn may well spur the wider market into action early in the year. We have already seen an upturn in enquiries from potential investors in our local offices.
Following 1st April, the investment market is then likely to dip as buyers adjust to the new ruling as the extra costs could be quite substantial. For example, a £275,000 property will see the amount of stamp duty treble with an increase from £3,750 to £12,000.
So if you are thinking of selling a home which may have investment appeal, or which may suit second home owners this summer, it makes sense to market your property as soon as the New Year is underway.
Early marketing will enable serious investors to consider your property and act quickly to complete by the end of March, meaning you can put your own purchase plans into action sooner and you are likely to achieve a better price.
Whether or not you think your property may investment potential, If you are considering selling, get in touch with your local Henry Adams office as soon as possible to talk things through - the sooner you act, the sooner your property could be presented to our active buyers.
For further advice on all aspects of the property market and to arrange a market appraisal, contact your local branch, request a valuation online or use our online form and ask Henry!