Frantic start to 2016
We have agreed considerably more sales in January than we would normally expect for this time of year. This is mainly due to investors rushing to purchase holiday and buy to let homes before the April deadline of the Chancellor’s extra 3% in Stamp Duty on these properties. As of the 1 April 2016 these higher rates will apply. For instance whereas as at the moment any property purchase to a value of £125,000 attracts no stamp duty, a second home or holiday home/buy to let will attract 3%. From £125,001 to £250,000 the rate now is 2% but will increase for the second homes to 5%. Then the next £675,000 will rise from 5% to 8% and from £925,001 to £1,500,000 from 10% to 13%. The remaining amount or the portion above £1,500,000 will rise from 12% to 15%. There are of course all sorts of stories of ways around it (i.e buying in the name of a business) but we have to wait to see how things pan out over the first few months as to whether there will be any useful loopholes.
The major gripe with Estate Agents nationwide at present is the lack of stock. Many agents are running with historically low stock levels and as we head towards the spring, we hope this situation will improve. Of course potential vendors look around for properties to move to and see that there is not much choice, so they don’t bother putting theirs on the market. A vicious circle. For those potential vendors, I can only say that now is a great time to sell with buyers having less choice and excellent prices being achieved.
It has now been just over a year since the official launch of OnTheMarket.Com and it has proved to be a huge success with over 6,500 offices signed up nationwide and more offices joining all the time. This is the site for buyers to visit first as many of the member agents put their new instructions to OnTheMarket.Com before any other.
Fist published By The Dart March 2016 issue
