How does the Stamp Duty change affect you?
Chancellor Philip Hammond has announced in his Autumn Budget that stamp duty will be abolished immediately for first-time buyers buying a home worth up to £300,000. Additionally, for properties costing up to £500,000, no stamp duty will be paid on the first £300,000.
The Chancellor anticipates that this change will affect 95% of first-time buyers whilst 80% of those will pay no stamp duty at all. Yet, many believe that the new stamp duty cut will make little difference on homeownership levels amongst young people in the UK.
Property experts believe that unaffordable house prices are the problem, not stamp duty and many believe that “pouring financial fuel on house prices will only result in even higher house prices”.
However, for foreign investors looking to invest in the UK Buy-To-Let market, the abolishment of the stamp duty on homes worth up to £300,000 is good news. According to a recent study, overseas-based landlords have been put off buying properties in the UK because of the large tax bills.
A recent study found that in 2017, one in 20 homes was owned by an overseas landlord, which is a fall from 2010, when the figure was one in eight properties.
With the average home in the UK worth £226,367 (Land Registry, 2017), foreign investors will benefit enormously from this change in stamp duty and it will mean the Buy-To-Let market in the UK remains buoyant.
So if you’re an overseas investor considering Buy-To-Let, Edifice Invest can help! We have a wide range of investment opportunities available offering returns of up to 10 per cent per annum. Plus, we work closely with all of our investors so if you’re seeking a ‘hands off’ investment, you can rest assured that we have the experience and capability to deal with the developer and property management company too.
To discuss the latest opportunities with one of our advisors, fill out our contact form below and we will be in touch.
