Just 51 Days Until Stamp Duty Deadline
Demand for property has surged since Chancellor George Osborne announced an extra 3% Stamp Duty charge for buy-to-let landlords and second homebuyers. And now, there’s just 51 days before the additional tax is imposed.
The Royal Institution of Chartered Surveyors (RICS) reports that its members are witnessing a rush of purchases before the 1st April deadline, when the charge is enforced.
The body also predicts that house prices in London, the South East and East Anglia will increase by 5% per year in each of the next five years, compared to a UK average of 4.5%.
Conveyancers are also experiencing increased workloads due to the 1st April deadline – this could affect purchases, as searches are taking longer in some areas.
The Managing Director of Searches UK, Andrew Stenning, says: “We are currently seeing a very active conveyancing market. Searches for purchase transactions are currently taking an average of seven to ten working days, but this does depend on the area where the searches are being carried out, as some of the local authorities are experiencing a backlog.
“This is having a knock-on effect on us and other search providers being able to deliver reports in a timelier manner.”1
With just 51 days before properties need to be completed in order to beat the extra tax, landlords must act fast if they wish to expand their portfolios and avoid paying 3% more.
1 http://www.propertyindustryeye.com/demand-for-property-has-jumped-says-rics/