Being hailed as the “final nail in the coffin of small landlords,” the upcoming increase in stamp duty will dramatically change the way that property management, online estate agencies and home buying will operate in the UK in coming years. November 25th’s Spending Review and Autumn Statement added 3 percentage points to the stamp duty that is to be paid by home purchasers who own existing property, and this change is set to begin in April of 2016.
While the figure “3 percentage points” may not sound like a dramatic change, do not be deceived by this seemingly small number. In fact, this increase will see those purchasing a second (or tenth) property paying nearly three times the amount of stamp duty on their new property. For instance, someone buying a £350,000 buy to let property will currently pay £7,500 in stamp duty taxes. As of April that amount will skyrocket to £18,000 pounds – a 250% increase.
This massive increase will certainly hinder the ability of many prospective landlords to go out and buy a second or third property. That said, firms that own more than fifteen properties will not be subject to this nasty tax increase, a move that many argue unfairly pits small time landlords against massive corporations. This will surely give the huge property giants yet another advantage when it comes to snapping up the available valuable homes across the country.
What should you be doing before April?
As April approaches and the increase in stamp duty tax looms, it is now the time for potential homebuyers looking to own a second, third or tenth ‘buy to let’ rental property to act quickly. Right now is the best time to buy – if you wait, you will be hit with this massive increase and potentially lose your chances of ever owning a rental property and also lose all of the financial benefits that come along with this.
One of the first steps you need to take to find reliable and accurate advice - begin your search by perusing the internet for the cheapest online estate agency that has excellent reviews and trustworthy agents. The UK's largest online estate agency is always a good place to start –they will be able to point you in the right direction and help you begin viewing the available properties on the market.
Financial experts and online estate agents all agree – if you want to own an investment property, now is the time to act. Waiting even a few more months may put you at a deep disadvantage when it comes to achieving your financial goals – you don’t want to get caught up in the last minute melee as landlords from across the UK rush to snap up all available homes. Contact a trusted online estate agent today – don’t lose out.
To find out more about selling your property online via I Am The Agent please call 0333 4441 007 or email info@iamtheagent.com . If you are looking to find your dream home before April 2016, get searching here.