Conveyancers report ‘turbo-charged’ increase in Buy-to-Let activity as SDLT change loomsMarch 9, 2016
- Buy-to-Let and second-home activity increased by 46% since the additional Stamp Duty Land Tax announcement was made in November 2015
- 99% of conveyancers feel there has been an increase in clients wanting to complete their conveyancing before 1st April 2016
- 55% of respondents have reported an increase in enquiries from people looking to buy additional properties as a registered company
Activity within the Buy-to-Let and second-home market has increased by 46% since the proposed introduction of a Stamp Duty surcharge for additional home buyers, according to research by My Home Move, the UK’s leading provider of mover conveyancing services.
In a poll also run by My Home Move, 99% of conveyancers questioned also reported an increase in clients wanting to complete their conveyancing before the 1st April deadline, to avoid the proposed additional 3% Stamp Duty levy.
Commenting on these finds, Doug Crawford, CEO of My Home Move said:
“Since the announcement by the Government in November that additional homes are expected to be subject to a 3% Stamp Duty levy, we have experienced nearly a 50% increase in business from people wanting to purchase a second home or Buy-to-Let property – fulfilling My Home Move’s prediction that the announcement would ‘turbo-charge’ the market for the first few months of the year.
“Having to pay Stamp Duty has never been popular with home buyers, so it’s no surprise that many are keen to avoid additional charges by pushing for early completions. We know that a proportion of our clients are buying an additional property as a way of helping their children, as many can’t afford rising rents, let alone the cost of a property on their own. If the Stamp Duty changes come into force from 1st April as expected, then it seems unfair that the Bank of Mum and Dad will have to be raided yet again, in order to prop up the housing market and next generation of home movers.”
Alongside these findings, the company also reported a surge in enquiries from people looking to purchase additional properties as a registered company, to avoid the Stamp Duty levy altogether.
The details relating to additional Stamp Duty charges for additional home owners will be announced during the 2016 Budget (16th March) and is expected to become law on 1st April. The original announcement was made by the Chancellor during the Autumn statement in November 2015, from which followed a period of public consultation. For further details please visit www.gov.uk