Many have welcomed the increased taxes for investor purchases, feeling that they have had it too good for too long. There is hope that it will make it easier for first time buyers to secure properties at the lower end of the market. But is it really going to help first time buyers, or just make it harder?
As expected, the 1st April deadline saw a rush to complete on investment purchases before the additional 3% stamp duty land tax came in to force. This increase in activity pushed house prices to a record new high, with the average UK house price now exceeding £200,000 for the first time.
Increased scrutiny is expected for buy-to-let mortgages, with as many as 1 in 5 applications that would currently be accepted likely to be rejected under the new proposals, and fewer expected new investment purchases over the coming months. With reduced supply and increased demand, it is likely that current landlords will seek to recoup some of their additional costs by increasing rental prices and piling more financial pressure onto those still seeking their first property.
For those that are ready to act now, there is likely to be an opportunity to get a good deal with the reduced pressure at the lower end of the market. However, for those who aren't ready yet and are currently renting, it is likely to be even harder to save the all-important deposit and extend the process by some margin.
Source material: http://www.propertyreporter.co.uk/gavin-handman