As the housing industry awaits the introduction of the new supplementary stamp duty for buyers of investment properties and second(or more) homes on 1st April, we should consider who is likely to benefit from the after effects.
Sales of properties to ‘buy to let’ buyers have been brisk, to say the least, in the early part of the year and it is generally claimed that this particular type of buyer has often driven the market beyond the affordability of first time buyers until now. However, it might be reasonable to assume that as of 1st April, some of that buying power might just swing back to the first time buyers!
Subject to confirmation on 16th March, as we’ve mentioned before, it looks likely that a first time buyer could have a stamp duty saving advantage of £3,750 against an investment buyer on a property price of £125,000, for example.
The Bank of England’s base interest rate remains at the record low of 0.5% that it’s been at since March 2009. The government has also recently introduced the Help to Buy ISA alongside the existing Help to Buy scheme to help potential first time buyers to save for a deposit. With this in mind, surely now is a great time for making those plans to get on the housing ladder?
If you’re thinking of making the big step and want to get an idea of what your options are with regards to a potential mortgage, we’d be pleased to put you in touch with a mortgage advisor from our affiliated Mortgage Advice Bureau. They’d be happy to have a free, no obligation chat with you and answer any questions that you may have. Just contact any of our sales branches and we’d be pleased to make an appointment for you.