In the Autumn statement this week the chancellor George Osborne announced the raising of stamp duty payable on 2nd homes and buy to let investments to add an additional 3% surcharge.
This has been done to raise additional funds for the public purse and a raft of other measures were announced to apparently bolster the housing market and allow buyers to purchase their own home including up to 40% equity loans, funding to house builders to build more starter homes, £4bn lent to housing associations, and £200m to build homes to rent.
Even in an area like West Yorkshire where house prices are much lower than the likes of the South East, on a 2 bed terrace investment house with a purchase price of £90,000, changes in stamp duty payable will mean you pay £2,700 instead of nothing.
Purchasing a more expensive property up to £250,000 will lift duty payable from 2% to 5%.
The changes come into place from the 1st April 2016 which means that the traditionally quieter period for the housing market over Christmas and well into January could be turned on its head by a rush to purchase.
Ramsdens conveyancing said, With the average transaction time between 10 and 12 weeks, buyers wishing to purchase and avoid paying additional stamp duty need to act now or risk missing the deadline.
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