In recent news, Chancellor Rishi Sunak has unveiled the latest batch of budget changes. Doing so, he has detailed plans for changing the current state of Stamp Duty, business rates and even covered sick pay refunds for those affected by Coronavirus.
But firstly, what are the planned changes to Stamp Duty? And who does it concern? Fortunately for UK buyers, this only affects overseas buyers looking to buy a property in England. The change itself comes in the form of a two per cent surcharge which will come into effect April of next year.
Further addressing the proposal, Sunak also confirmed that the extra £650m raised through this surcharge would be used to help find permanent accommodation for around 6,000 rough sleepers.
Whilst some are pleased that Stamp Duty Land Tax (SDLT) rates have remained the same, others within the housing market are taking sides on whether they agree with the proposed changes. Neil Cobbold, The chief sales officer at PayProp, says: “Changes of this type – and reduced competition from overseas - would encourage more domestic landlords to invest in further properties and provide more homes for the growing tenant population.”
Meanwhile, the Chief Executive Officer of Winkworth; Dominic Agace, says: “Stamp duty is a real negative for the property market as it discourages people from moving, particularly downsizers. This has a knock-on effect on the flow of employment, which is bad news for businesses trying to recruit, especially in London and other major cities.”
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