January 14, 2016
From 1st April 2016 the process of buying a second home could be a little more costly. This is due to the government’s plans to introduce an additional 3% on the stamp duty tax for second homes and buy-to-let properties.
The scheme is a reaction to the significant price rises in and around London during past five years. The government’s aim is to stifle buy-to-let demand, reducing saturation in the market, leading to a slower growth of prices in London and commuter hotspots, such as Maidenhead.
From the perspective of individuals looking to sell their property in 2016, this legislation could be bad news. While the investment market will not suddenly cease to exist, the barriers to entry are being increased. A reduced level of demand, combined with a higher supply (as fewer homes are being snapped up as investments) will only lead to one thing: a lower potential sold price.
However, the legislation does also present an opportunity. If you intend to sell your property in 2016, moving this transaction forward to the first quarter of the year gives you the chance to achieve the best possible sold price. To help you along the way Kirkwoods are offering FREE EPCs to any properties placed on the market before 1st March 2016.
To request a free market appraisal please contact us today.