On the 22nd of November 2017, Chancellor of the Exchequer, Philip Hammond presented his first Autumn budget to parliament. The budget covers a range of different areas including housing, stamp duty, pensions, tax avoidance and much more.
This article will provide a general overview on how the changes to stamp duty land tax (SDLT) might influence real estate agents, cash house buyers and other property related sectors but we’ll focus on the how the changes to (SDLT) will affect first time buyers.
As you can tell there a number of pro’s & con’s to the said change in stamp duty. Let’s look at these a little closer.
So there you have it – the pro’s & con’s for the stamp duty cut! But what do some of our industry experts think about the budget in general and the change in stamp duty?
One things for certain, the current mood within Britain’s housing market is not one of optimism.
In fact, according to the Telegraph, the chief executive of the National Housing Federation, David Orr believes Hammond’s budget has failed to deliver the ‘bold‘ changes that are required to help rejuvenate and fix Britain’s housing crisis.
To summarize, according to Orr, the key points mentioned in the budget are a step in the right direction which combined may see help see a small growth but in his own words:
None of it is bold enough
In April 2016 there was a change in stamp duty land tax. These changes however only really affected landlords who purchase buy-to-let or additional properties. Another change in stamp duty so soon came as a bit of a surprise to some.
Property experts & politicians alike suggest the change in stamp duty was aimed at the younger generation in the hope of winning back their votes from Labour and making their dream of being able to purchase a home a little more realistic.
The stand out point to the change in SDLT is “abolishing stamp duty land tax on homes under £300,000 for first-time buyers” but does it come with any consequences?
At first glance it looks like a nice and easy way to help first time buyers get on the property ladder and we’re positive it will help – but not so much in the long run.
After a while there is a very high possibility that the extra savings people make on the stamp duty cut will be made void by property inflation. This is due to the on going & long term problem Britain’s housing market is currently facing – There are simply not enough new homes being built!
We believe the cut in stamp duty & the budget overall are a step in the right direction, however, more needs to be done in order to lift Britain out of it’s housing crisis.
The bottom line is:
Not enough UK houses are being built so the supply & demand for homes is always fluctuating resulting in a very unbalanced market.
We’d love to hear your opinions! If you enjoyed our article visit our home owners advice center for more of the same. If have any questions or would like to give us some feedback, feel free to contact us at any time or leave a comment below!