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Homeowners unconcerned about stamp duty deadline dip in house prices

The majority of homeowners in England remain unconcerned about a stamp duty holiday deadline dip in house prices, although a third would be deterred from selling should one materialise. That’s according to research from the homebuying platform, YesHomebuyers, who found that 83% were unphased about a potential cool in house

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Stamp Duty Woes for Large Investors

An interesting development; it has been announced that large investors will, in fact not be exempt from the previously announced stamp duty surcharge to be brought into effect in a matter of weeks. The 3% stamp duty, to be applied on additional homes, was initially believed to only affect those

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Stamp Duty Effects Hit Home, But with the Right Stakeholders?

Jackson-Stops & Staff, one of the UK’s leading estate agents, has released new information that suggestions as to the reform of stamp duty on second homes, may actually fail to achieve the goal of putting off buy-to-let investors. The information, in effect shows that inflation in housing prices may actually

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Latest Issue

BDC 317 : Jun 2024

stamp duty

Stamp duty savings available with new phase of homes at local wildlife-friendly development

Stamp duty savings available with new phase of homes at local wildlife-friendly development

Stamp duty savings available : Outdoor space, eco-friendly features and energy efficiency are the top three most desirable attributes in a new home according to a recent study, and Barratt David Wilson Homes’ Kingsbrook development offers all three in abundance.* With the recent stamp duty cuts, first time buyers can save up to £6,250 on homes worth £500,000 which will apply to homes at the brand new phase launching at the Orchard Green village in Kingsbrook. The new phase will be launching on Saturday 8th October and will include 246 one, two, three and four bedroom homes in total, of which 57 will be affordable. The first release will include three and four bedroom homes with prices starting from £425,000, allowing first time buyers and second steppers alike to take advantage of the new stamp duty cuts. The housebuilder’s award-winning partnership with the RSPB ensures Kingsbrook is a development where wildlife can thrive, with over 60% of the development dedicated to green infrastructure including ecological enhancement in the form of: wildflower meadows, ponds, woodlands, orchards, a 250 acre nature reserve, parks and allotments. Incorporated throughout the development are features such as bird boxes; hedgehog homes and highways, so that wildlife can travel safely between gardens; bee hotels and dead wood features, to provide a home for insects and solitary bees; and composting facilities. As a result of these wildlife-friendly measures, a number of key bird species have increased including the Red-Listed house sparrows which saw a rise in breeding pairs from two to 147, whilst bee numbers have more than doubled. Marc Woolfe, Head of Sales at Barratt David Wilson North Thames, commented: “Sustainability is becoming increasingly important to the next generation of homebuyers, and is something we have always prioritised. We’re very proud of our partnership with the RSPB at Kingsbrook and the important strides it has made to not only protect the existing ecology but enhance it – and it’s something that has proven to be an important factor in our residents choosing to live here. The next generation of homebuyers are definitely more concerned with the impact of their home on the environment, and Kingsbrook is a critical blueprint to demonstrate how building homes and protecting wildlife can go hand in hand.” “For this reason, alongside the drive for energy efficient homes as the energy crisis continues, we expect our new phase at the Orchard Green village to be very popular – we’ve already had many local first time buyers enquiring about how much they can save following stamp duty cuts. We want to encourage anyone interested to register their interest online, or come down and speak to one of our fantastic sales advisors who can advise on the many schemes we have to support our customers – like Deposit Unlock and Part Exchange.” All homes at Kingsbrook are built with sustainability in mind and energy efficiency at the forefront of the design, achieving an EPC A or B rating – allowing homeowners to save up to £1,410 thanks to the range of the highest efficiency technology incorporated throughout, including: A-rated condensing boilers; low heat-loss hot water cylinders which ensure water stays hotter for longer; and water savings features and fittings helping to save up to 25 litres of water a day per person. The new phase of homes at the Orchard Green village in Kingsbrook will be launching on Saturday 8th October with prices starting from £425,000. To find out more about Barratt David Wilson North Thames or the new homes at Kingsbrook please visit www.barratthomes.co.uk / www.dwh.co.uk or call 0333 355 8500 / 0333 355 8501 Building, Design & Construction Magazine | The Choice of Industry Professionals

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UK Construction PMI: UK housing market shrugs off end of stamp duty holiday with booming demand, but interest rate rises could hamper this – MHA comments

Following the release of the latest UK Construction PMI today (4 November) and with the Bank of England’s (BoE) interest rate decision expected at 12pm, Martin Longmore, Partner at MHA, says the end of the stamp duty holiday failed to rein in demand and the jury is out whether a rise in interest rates and mortgages will put the brakes on either: “Those fretting that the recent end of the stamp duty holiday would dampen demand in the UK housing market needn’t have worried. Most house price indices continue to show annualised increases of between 6% and 10%. Demand is also outstripping supply with sellers still not tempted to enter the market and the supply of new properties hampered by raw material and labour shortages. “However, if the Bank of England announces any changes to the interest rate later today, or at its next meeting in December, this picture could look very different. With the rate of inflation above the BoE’s target of 2%, Monetary Policy Committee members are under increasing pressure to put up base rates. Indeed, mortgage companies have already withdrawn a significant number of their most attractive deals pending the announcement today.  “Markets have factored in a limited number of base rate rises through 2022 though nobody expects these to be dramatic. As such, the jury is very much out as to whether action on interest rates (if it happens) will have a big impact on UK house prices. “The commercial property market in the UK remains turbulent. Landlords are struggling because they’ve had to provide concessions during the worst of the pandemic. They’re also facing weak demand and dealing with office tenants still bewildered over what the need for spaces over the long-term might be. The announcement of the acquisition of urban regeneration specialist U+I by property giant Landsec this week, for £190m in an all-cash deal, does imply that there may be some confidence returning to the market.”

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Homeowners unconcerned about stamp duty deadline dip in house prices

The majority of homeowners in England remain unconcerned about a stamp duty holiday deadline dip in house prices, although a third would be deterred from selling should one materialise. That’s according to research from the homebuying platform, YesHomebuyers, who found that 83% were unphased about a potential cool in house prices now the initial stamp duty deadline is about to expire. When asked the same question with regard to the second and final deadline expiring in September, 82% remained unconcerned about a potential market cliff edge causing house prices to tumble, with just 4% stating they were very concerned. Yes Homebuyers then asked if a dip in property prices would deter homeowners from selling, with 32% stating it would, although again, 68% would still hit the market regardless. However, it may be the cyclical nature of the property market that is helping boost homeowner confidence in the face of a potential house price slump. 87% stated they had no plans to sell within the next two years, meaning any house price decline caused by the end of the stamp duty holiday is likely to have come and gone. Just 7% plan to sell within two years, although 6% do have plans to sell within the next year. Matthew Cooper, Founder & Managing Director of Yes Homebuyers, commented: “There’s a very real chance that a house price dip is on its way once the stamp duty holiday fully expires. Having spurred an unprecedented level of buyer demand for such a sustained period of time, it’s only natural that this artificially manufactured, house price boom bubble is going to burst once the stimulus is removed. It has caused such concerns that the government has tried to soften the blow, not only by extending the stamp duty holiday itself but by implementing a staggered deadline to minimise the immediate impact on the market. The good news is that many homeowners remain unconcerned, no doubt due to investing with a long term view rather than on a profit and loss basis. With many also having little intention of selling anytime soon, the chances are that any market decline may have been corrected by the time they do. However, those with plans to sell within the next six months may want to do so sooner, rather than later, in order to achieve current market values. That said, with sizable delays also plaguing the market, the best chance to complete before a house price dip is to consider alternative options to sell your house fast.” Survey of 1,080 homeowners in England carried out by Yes Homebuyers via consumer research platform Find Out Now (25th June 2021). How concerned are you with the value of your home falling when the first stamp duty deadline expires? Answer Respondents Not concerned at all 83% Somewhat concerned 14% Very concerned 3%     How concerned are you with the value of your home falling when the second stamp duty deadline expires? Answer Respondents Not concerned at all 82% Somewhat concerned 14% Very concerned 4%     Would a dip in property values deter you from selling? Answer Respondents No 68% Yes 32%     Do you intend to sell your home in the next: – Answer Respondents I don’t intend to sell in the next 2 years 87% 24 months 7% 3 months 2% 12 months 2% 6 months 1%    

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Stamp Duty Woes for Large Investors

An interesting development; it has been announced that large investors will, in fact not be exempt from the previously announced stamp duty surcharge to be brought into effect in a matter of weeks. The 3% stamp duty, to be applied on additional homes, was initially believed to only affect those investing in less than 15 properties yet, in the recent budget announced by Chancellor George Osborne, it has been made clear that even those with a larger property portfolio will be subject to the stamp duty. Of course, in contrast to previous statements of optimism within the private renting sector, the news is heralded as a concerning development for the build to rent sector, with concerns raised over the profitability of such endeavours for investors. Expected to represent a considerable deterrent to those pursuing build to rent investments as their primary mode of investment, and, as highlighted by the British Property Federation’s Chief Executive, Melanie Leech, it may also restrict the sector’s ability to: “Deliver a significant number of new, quality affordable homes.” And while those purchases incorporating greater than six different residential properties can indeed be regarded as a non-residential investment, simultaneous reforms made to stamp duty for commercial properties is expected to provide a boundary for those looking to sneak around the stamp duty implemented. With this development now making it night on impossible for investors to avoid the additional charges, dampened spirits present the problem of a negative outlook on the performance of the sector and associated supply, whilst demand for private rented households has been clocked in at an approximate 1m over the course of the next five years. Responding to outcries from the wider sector, Berwin Leighton Paisner’s Head of the Corporate Tax Team, Elizabeth Bradley stated: “The chancellor has acknowledged the need to build more homes but the extension of the extra SDLT rate on buy to let to large investors will discourage investment in the private rented sector.”

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Stamp Duty Effects Hit Home, But with the Right Stakeholders?

Jackson-Stops & Staff, one of the UK’s leading estate agents, has released new information that suggestions as to the reform of stamp duty on second homes, may actually fail to achieve the goal of putting off buy-to-let investors. The information, in effect shows that inflation in housing prices may actually offset the reform changes, and that the 3% surcharge placed on second homes may not yet be enough to actually deter potential investors from seeing buy-to-let investments as optimistic. And while it has been declared that there has been a surge in registrations made for buy-to-let properties up to April, it has also been highlighted that the majority of these investors will see greater returns from the inflation of property prices in the modern recovering housing market (potentially in under a year), thus positioning the 3% surcharge as nothing more than an inconvenience. In fact, Jackson-Stops & Staff has warned that those most affected by the surcharge will actually be tenants who will suffer from increased rental prices as reported previously. This, in effect, will likely deteriorate the market conditions for those looking to break onto the rental market as already previously highlighted, with landlords still seeing optimistic market conditions for at least some time. As explained by Jackson-Stops & Staff’s Chairman, Nick Leeming, the government’s attempts to even the playing field for property investors and first-time buyers, the situations does nothing to remove the spotlight which landlords should be seeing on investments into property as one of the most solid investments to this day. He added: “The idea that stamp duty tax will act as a deterrent is a fiction, as for most landlords it won’t amount to a significant figure.” Of course, with the impacts, once again, hitting the tenants of properties as opposed to the pockets of landlords, the growing debate on the depreciated affordability of rental housing stock is of even greater note. The question, however, is as to whether the government can find an alternative way to dissolve interest in buy-to-let investment in a way which won’t come down on the tenant.

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