The battle is won?
The 1st April 2016 sees new Stamp Duty rules come in to place which leave buy to let landlords feeling a pinch and a punch on April Fools Day.
In the current state both first time buyers and landlords compete heavily for properties with low to mid-range price tags, with landlords often winning the battle for the best homes by affording higher deposits and a quicker sales process.
In 2015 it was even reported that more properties in Brighton and Hove are owned by landlords than regular home buyers. This could all be on the change as David Cameron’s government have applied a 3% surcharge of stamp duty for landlords, giving first time buyers and movers their edge back. Bad news for landlords, but great news for first time buyers and home movers.
From April 2016 a property worth £200,000 will see Stamp Duty of £1500 for a first time buyer or a home mover. As a landlord however, the stamp duty surcharge of 3% means a fee of £7500 will be paid on the same property, a difference of £6000.
This advantageous scenario for first time buyers is starting now because the sale needs to complete before 1st April for Landlords to avoid the additional tax, which is pushing it unless the property has no chain.
If you’re a first time buyer and need assistance navigating your purchase and obtaining the best mortgage for your situation then contact us or call us on 01273 736536.