According to the Telegraph, buy to let opportunities have been opened up by the Budget’s stamp duty reforms following the announcement that there are to be tax cuts on the bulk purchase of residential properties.
The Coalition said that they want to attract investment from major institutions, such as pension funds and landlords, into residential property. Property Agent, CBRE are forecasting that this plan could unlock around £7.5 billion worth of investment.
So what do the proposals really mean? When purchasing more than one property stamp duty would be calculated on the average values of the properties and not the bulk value, meaning that purchasing 100 properties worth an average of £200,000.00 would equate to stamp duty at 1 per cent, equal to £200,000.00, rather than at 5 per cent, equal to £1 million, costing the Treasury an estimated £560 million over five years.
More and more people have been forced into rented properties because of a lack of both available funding from lenders and deposits so this will no doubt be welcome news for those that no longer wish to live with mum and dad but how will this help the first time buyer get on the ladder, and subsequently move the housing market on?
You can read the full Telegraph article here.
What do you think – will this mean that fewer people will be able to afford to buy rather than rent a property?
Today’s Conveyancer, bringing you the latest conveyancing news and updates.
Source: www.telegraph.co.uk
