Rumoured this morning (6th June) is the possibility that Rishi Sunak could be set to announce a stamp duty holiday for the UK property market to increase demand after COVID-19. So what does this look like?
Good news for investors
The current stamp duty rules are heavily weighted for first-time buyers as they’re exempt from paying on homes under £300,000 in the UK and £500,000 in London. This does mean, however, that investors who have portfolios are required to pay each time they purchase a property worth over £125,000. Increasing this or providing a Stamp Duty Holiday would mean that investors would be able to buy properties up to £300,000 in the UK and not pay stamp duty.
As part of the “Summer Economic Update,” it is expected that this will be announced, potentially with the delay of the new stamp-duty measures that were announced at the previous budget. It means that investors can diversify their portfolio and invest in UK Property and get favourable rates – another sign of the strength of the UK property market and the willingness of the UK Government to facilitate growth in the economy where possible.
Further potential Property changes
Also mooted to change is the SDLT (stamp duty land tax) being removed, meaning that new housing will receive a welcome boost as projects would no longer be held back by expensive initial cost negotiations. This is likely to be fantastic news for Property Developers who have been holding back due to financing reasons, and this would free up some much-needed potential capital and accelerate building projects that may have been delayed.
There are also new measures for apprentices, with companies looking to be given up to £1000 to take on trainees, meaning that property developers could take on cheaper staff to keep up with the increase in demand for property and the reinvigoration on building projects.
A rush in demand
We’ve already seen a significant uplift in enquiries about our off-plan developments at Stretford and Bishopgate Gardens. This move would ultimately remove a big chunk of initial investment, freeing up this cash to put into a reservation fee. The move is intended to boost the UK Property Market. As such we would expect to see a massive surge in demand – our Stretford Development already has a considerable number of enquiries, we expect this to double in the coming week on the back of this news.
Recently there have been indications that investors are looking for diversification with multiple lower-cost properties, rather than going for one or two bigger ones. This change to Stamp Duty benefits those types of investors greatly, as the stamp duty for higher-cost property remains and as such – this encourages investors who are looking for low-cost, high-yield property types.
If you’ve been considering a property investment, the North West has considerable opportunity, and The Heaton Group will have a wide array of developments to suit all requirements.
To speak to us regarding your next investment, please email us on email@example.com or call 01942 251945