Earlier this month, newly-installed Chancellor Rishi Sunak delivered his first Budget. While Brexit was still very much high on the agenda, Venture Director Michael O’Connor looks at what is in store for the housing market.
The key takeaway from the Spring Budget for anyone involved in the housing market has to be the two per cent stamp duty surcharge for overseas property buyers, the money from which Sunak said will be used to fund 6,000 homes for homeless people.
Currently, first-time buyers pay no stamp duty on a home costing £300,000 or less. If they spend £300,000 to £500,000, they pay no duty on the first £300,000 and five per cent on the rest. From April 1, however, all non-UK residents buying residential property will be charged the extra two per cent on top of any duty already applicable.
The surcharge for overseas buyers could affect 70,000 of the UK’s annual 1.2 million property transactions, with London likely to be the most heavily impacted, being, as it is, Britain’s key market for overseas buyers. Indeed, concerns have been raised over this practice in recent years, as foreign buyers snap up London property as an investment, pushing up prices.
However, up in the North East, there has never been a better time to purchase a property. The current crop of mortgage deals out there is as good as it’s ever been thanks to low interest rates, with recent further reductions only making the prospect more attractive.
Here at Venture, our independent mortgage advisors can check the entire mortgage market for you to get you the very best deal, should you decide that now is the right time to make a move.
So if a new house is on the cards for you this Spring, get in touch with our dedicated team to see how we can help.