LETTING & ESTATE AGENT

Will Stamp Duty increase lead to buyer surge?

Will Stamp Duty increase lead to buyer surge?
From April 2016 landlords will be charged an additional 3% Stamp Duty on buy-to-let purchases.

As a result, many landlords are attempting to push through purchases and find property before April 1st. As an example on an average 2 bed house in Tamworth at £120,000, this would mean an additional £3,600.

Up until this April date, many prices could be inflated as demand soars. However, following April the prices that sellers achieve could well drop, with landlords taking into account the additional Stamp Duty payment when making their offers.

The National Association of Estate Agents (NAEA) has released figures showing the number of house hunters registering their interest with estate agents has risen by 20% at the end of 2015.

Some landlords are looking to incorporate their portfolios as a way of purchasing buy-to-let properties without the need to pay the 3% Stamp Duty. With incorporating comes yearly expenses, such as annual accounts to be filed at Companies House. Therefore, incorporating may not be suitable for all landlords as a means of saving costs over the year.