Although we currently find ourselves living in what are undoubtedly extraordinary times, we are excited to report some great news for would-be UK property investors. Thanks to an astute move by the country’s Chancellor of the Exchequer, the UK property market is set to receive a boost of previously unrivalled and epic proportions. The recent announcement of a huge cut in stamp duty (property purchase tax) is set to save buyers considerable sums of money while stimulating growth in the housing market!
Investors set to benefit from substantial cash savings
The adjusted stamp duty threshold now makes any property purchased for £500,000 or less, exempt from the duty (provided it is used as the buyer’s primary residence), investors have been given the green light to buy. Meanwhile, even landlords and other types of owners will only be subject to the existing additional 3% up to this ceiling.
Why everyone is set to be a winner!
The changes are estimated to offer savings to around 90% of buyers and provide them with an average saving of £4,500. Better still, many high-end investors who purchase a property with a value of over £500,000 could make far more substantial gains of as much as £15,000! Foreign property investors in UK housing are also now in a prime position since the changes which came into force in April of this year (2020) when the 2% surcharge affecting them was applied.
The far-reaching impact on the property market and the UK economy
If any reticent prospective property investors need confirmation that the actions of the UK Chancellery have not been both shrewd and effective, we draw their attention to the recent announcement by the UK’s Nationwide Bank. Nationwide are widely accepted as a “barometer” of the state of the country’s property market and are often noted as being the first to react to potential market changes.
Responding to the first “green shoots” of economic growth
Nationwide have now reversed their previous decision to decrease the loan-to-value percentage they offer against first-time buyer properties. As recently as June of this year (2020) they increased the deposit needed by first-time buyers from 5% to 15%, only to reset it at 10% in light of the government’s budget announcement.
Seizing the moment and riding the wave
There may never be another opportunity such as the one which presents itself to UK property investors at this moment in time and as always, those who choose to seize the moment stand to make the greatest gains. It is often said that every cloud has a potential “silver lining” and while the current global issues have taken a serious toll, the recent changes in UK stamp duty are one of the many innovations which are likely to help get things back on track.
Accessing all the help you need
The expert global real estate team here at Sherwoods Property remain on hand to assist you with every aspect of property purchase, investment and management. Contact one of our helpful and friendly UK property specialists today and discover the Sherwoods difference.