FOLLOWING the announcement in the Autumn Budget, first-time buyers will pay zero stamp duty on the first £300,000 of any home that costs up to £500,000.
This means that on a home worth less than £300,000, you’ll pay no stamp duty.
The Treasury estimates the move will mean 80 per cent of first-time buyers will pay no stamp duty at all. That will save the average first-time buyer, purchasing a £210,000 property, around £1,640 in stamp duty.
One effect of this, we hope, is that it will stimulate the market by getting things moving at the bottom of the chain. Helping first-time buyers get a foot on the property ladder is a positive move and is something that should benefit everyone further up the ladder.
What needs to happen, though, is that more affordable housing needs to be made available both in the form of new properties being built and existing properties coming onto the market. The removal of stamp duty will not benefit anyone if the homes are not available to satisfy first-time buyer demand. From there, hopefully, the knock-on effect will result in a stronger and more buoyant market for everyone.
The property market is stable with steady capital growth and a great return on investment. In the letting sector, figures show that rents for new tenants across the UK continue to rise, standing at an average of £913 a month, and we have seen exactly this happen across Northamptonshire.
In the medium to longer term, the fundamental driver of rents will be the balance between demand and supply for rented property. We expect demand in the private rental sector to continue to grow, even given the stamp duty changes that will take some traditional renters out of the lettings market and make them homeowners. Population growth and affordability concerns remain in the house purchase market, so it is important that we see efforts to support supply.
Those looking to invest in rental properties will find a wealth of experience at Chelton Brown, experience that is reflected in the systems, processes and policies by which we operate. We have a huge database of investors and work closely with agents and solicitors to make the process of getting into the lettings sector as smooth as possible.
If you would like more information about letting, selling or property investment, call Chelton Brown on 01604 603433.