Market activity and any changes that could have an impact on it are things we keep a close eye on at Finefair Ltd. It helps us to continue giving our clients the very best services. Our care and attention to detail are just a few of the reasons so many landlords trust us. It also helps that we provide the best estate management Wandsworth has to offer.
Stamp duty changes
The recent “Mini Budget” has brought some big news that could be great for property buyers. New Chancellor of the Exchequer Kwasi Kwarteng announced a whole array of changes last week, including the biggest tax cut since 1972. There are changes to corporation tax, income tax and National Insurance, and more.
What we want to focus on here is the change to stamp duty. The nil rate band is doubling to £250,000, up from £125,000. As a result, buyers will only pay the duty on any values over that level.
First time buyers will see the biggest benefit here. They won’t have to pay stamp duty on properties up to £425,000. This is an increase from £300,000. The maximum property value they can claim relief on will also increase, up to £625,000 from £500,000.
The changes mean that buyers could save thousands on purchasing properties. It can make it easier for FTBs to get on the property ladder and also makes it cheaper for people to upsize or downscale. This could unlock the whole market. As a top provider of estate management Wandsworth landlords can trust, we are happy to offer services if you invest.
What could happen?
The last time stamp duty was cut was during the recovery from covid. There was a temporary holiday on the tax to bring people back to the market and encourage activity. The first window for this was July 2020 to June 2021. However it was extended to September 21 to give more time for people to do deals.
The stamp duty holiday was a fantastic success, leading to a wave of transactions all over England and Wales. There is hope that the new cuts will have a similar impact, but in a more sustainable manner. Because it is a permanent cut we should not see a repeat of the rush to complete deals within the window.
However, there is a concern about the impact on house prices. There is a chance it could push them up, especially if supply does not increase. If this happens it could offset what people save on stamp duty, meaning it is still difficult to get a deal.
Further help
While there are concerns, the Government is aware that supply needs to improve. One way they will look to do this is to increase the sales of surplus public land. They will also create investment zones to get more businesses to invest, encouraging even more land sales. All of this could lead to a boost in housing supplies.
Speak to us about estate management in Wandsworth
Finefair Ltd is a company that understands what landlords and investors want. We aim to provide just that, including a combination of hands-off cost effective management, guaranteed rent, and more. A single package of services with us can do everything you want.
So, why not contact us today to learn more? We can tell you how we offer the most reliable estate management Wandsworth can offer and explain all the benefits. Then, if you want to start working with us we can get it all up and running.
