Since April of this year, when purchasing a second home, buyers have been faced with a 3% increase in stamp duty. This increase was a somewhat short sighted policy, introduced by Chancellor Osbourne, in an attempt to reduce second home ownership, thereby increasing property availability for the wider market and first time buyers. However, the knock on effect has meant an inevitable and predictable rise in private rents, which has further increased the burden on first time buyers, desperately saving to get their first foot on the property ladder.
After the surprise vote for Brexit at the end of June, there are now signs that the property market is beginning to slow down, with sluggish activity causing a drop in house prices in September. This cooling of the market has led to calls by some estate agents for the Government to review the new second home stamp duty policy. Reviewing the SDLT rates for second home ownership, would also help mitigate the reduction of mortgage tax relief that landlords have also had to deal with recently.
With one agency reporting the number of homes put up for sale down by 2.3%, and viewings over the same period down by 10.3%; we are beginning to see pro-active Government policy by the new Chancellor, in order to keep the property market and wider economy on a positive footing. This includes £2bn to boost housebuilding by freeing up public land, relaxing planning regulations, and an additional £3bn fund created to offer business loans to smaller housebuilders.
As we navigate these choppy waters, we remain hopeful that public sentiment will remain positive, and the message coming from Number 10 will continue to be that the UK is open for business. With Sterling at an all time low, a sensible and pro-active Government policy, should ensure buyers remain from both the domestic and overseas markets.
This article was written by Matthew Dailly, Managing Director of specialist bridging loan company Tiger Bridging.
About Tiger Bridging:
Tiger Bridging is a specialist bridging finance provider with over a decade in the market. They provide short term property funding solutions across the whole of the UK, offering bespoke and flexible lending terms.
Their funding is free from the restrictions imposed by larger institutions or the mainstream lenders. Their small stable of valued and fast-moving investors, complemented by a select group of hedge funds, provide a steady and reliable flow of capital to clients. Their culture is bespoke and their attitude is proactive. If the deal makes sense, they we can get the funding, regardless of the credit status of the client. For more information: www.tigerbridging.co.uk
Company Name: Tiger Bridging Ltd
Contact Person: Matthew Dailly
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