It’s all change for anyone buying a second home from April 2016. The Chancellor George Osborne has decided that anyone buying a second home is to pay an additional 3% stamp duty over and above the standard rate.
So the big question here is…. How will that impact on the housing market?
Currently the housing market is suffering from a severe lack of stock whether that be properties For Sale or For Rent.
If you turn the clock back say 15 years, the majority of properties in the lower price ranges would have been sold to first time buyers looking for their first home.
Having purchased their first property, after say 3 to 5 years with perhaps a family coming along, those homeowners would be thinking about moving on.
This would then bring a property back to the market and so the story continues……
However these days things are slightly different….
For every property we take on the market for sale, there tends to be a list of Investors looking to buy to let to create an income for themselves. I would say that 40% of enquiries for properties under £200,000 come from investors.
Great news for anyone looking to sell!! With so many interested purchasers the likelihood is that a sale price in excess of the asking price will be achieved.
However the downside is that if these properties are bought by investors, they are then removed from the market place for many years, as most property investors don’t tend to sell their investments. In turn this has contributed in creating the shortage of properties on the market today.
In my opinion therefore as investors normally take a long term view with regards to buying another property, although this additional Stamp Duty is a burden that no one would voluntarily wish for, my belief is that we will still see many investors buying property in our local areas.
Let’s be honest where else would you put your hard earned cash?
If you want a helping hand in becoming a property investor or you already have some investment properties and would like to add to your portfolio feel free to call me on 01702 558110
Stuart Thomas FNAEA MARLA