Act Now Over Second Home Stamp Duty!! Brian Carlisle. J R Hopper & Co.
Anyone thinking of buying or selling a 2nd home in 2016 should take action ..right now! The Chancellor has added an extra 3% Stamp Duty tax to all 2nd home and Buy to Let transactions which complete after 1st April 2016.
Buyers are rushing to buy their next properties, before the end of February, to allow solicitors time to transact the deal before the deadline. Sellers need to get their properties on the market, or prices reduced to the correct price now, before Xmas, to hit that rush. The New Year, and Spring will be too late!!
After April, buyers of a £200,000 second home cottage in the Yorkshire Dales will have to pay 5 times as much tax!!! The tax will rise from the current £1500 to £7500. Human nature dictates that people don’t like paying tax, and buyers will round this up in their heads to “nearly £10,000”. They will then either decide not to buy at all, or reduce their offers by £10,000 to compensate for this. Sellers will then have to decide whether to accept lower offers, risk not selling their property, or just take it off the market..
This could lead to a serious shortage of good 2nd homes on the market in the Spring, which could conversely push prices back up!!
Brian Carlisle at J R Hopper & Co recommends that you ACT NOW if you are planning to buy or sell. They are expecting a very busy Christmas and New Year in the Yorkshire Dales. Contact your Estate Agent right now!