For many years, stamp duty has been one of the primary concerns for anybody purchasing a property in the UK. This is a tax which previously applied to properties that cost more than £125,000, and buyers would pay a percentage stamp duty on the entire amount.
It has been announced that there are to be large changes in stamp duty, which could have a big impact on the way London properties are bought and sold and spark big alterations in the housing market.
Analysis has shown that the majority of buyers would be better off under the new reforms, giving them more money to spend on properties and making it easier for them to fulfil the requirements of lenders and successfully apply for a mortgage. Homebuyers will now only pay tax on sums above a certain threshold; in other words, they will pay nothing on the first £125,000, then will pay a percentage on any value over that amount. It has been claimed that the reforms will cut the tax bills of 98% of property buyers who are purchasing low- or medium-priced properties, and will also increase the number of house sales taking place next year. However, those investors purchasing properties worth more than £937,000 will pay more stamp duty under the new system than they did under the previous one.
As the leading lettings agent in Hillingdon and a provider of all property management services throughout London and beyond, we can help you to navigate these changes and ensure that you are making the right choices when it comes to purchasing properties. If you require any advice or guidance, or would like us to completely manage your purchases for you, please contact us for further information.