Some big changes announced yesterday regarding Stamp Duty payable on second homes with effect from 1 April 2016.
Buy-To-Let Landlords buying second homes will be subject to a 3% hike in Stamp Duty in every tax band.
This means that purchasing a £150,000 property which you would currently pay £500 in Stamp Duty for is set to cost £5,000.
A £250,000 property which you would currently pay £2,500 for is set to rise to £8,800.
This all great news for first time buyers as it could potentially free up more first time purchases as we see less Landlords snapping them up as investments.
It could however be completely different in the short term. We could see a mini bubble between now and the 1 April deadline with potential Landlords that were uncertain about whether to purchase a second property now making the decision to do it prior to the deadline.
James Hill
thelocksheathpropertyblog.co.uk 