The new 3% ‘additional’ stamp duty rate on any property bought as a buy to let or as a second home will shock all investors, on top of the loss of tax reliefs unveiled in July. For example, a Buy to Let purchase for £175,000 will cost £6,250 in stamp duty fees as oppose to £1,000. That’s a huge increase. Applications will definitely increase before the new tax is implemented.
Will this help First Time Buyers?
Possibly. Properties that need ‘doing up’ will now face this extra cost and investors/landlords may not see the margins. Auctions will definitely see a hit in property sales.
What we think will happen?
Prices will still go up and possibly rent. The Government has a huge task in supplying more properties to accommodate demand and are trying to build more homes. Unfortunately demand is still outstripping supply which in turn is pushing prices up for First Time Buyers.
Why will rent go up?
Landlords are very acute with their figures, and any properties bought in the near future will factor in the new stamp duty rates.
Landlords will be hoping mortgage lending eases and the deposit required is less. Currently the minimum deposit is 15% with the majority at 25% for the better rates. Buy to Let lenders that offer 80-85% mortgages will seek an increase in applications. We have access to the whole market. Please contact us for further info…
Rental yield are still good in Manchester, according to HSBC (May 2015) Manchester continues to grow especially with its large student populations and being the third biggest UK city (well 2nd in our opinion).
We Know Mortgages Ltd has no control or responsibility for the pages you are about to access, or to where any subsequent links may take you.