Tax is a pretty unpopular aspect of living and working, there are a number of different ways in which we are taxed but without doubt one of the most vilified is stamp duty. If you are a homeowner, you will know all too well what a hindrance stamp duty can be to your property purchase.
The Government has gone to great lengths to help limit the impact of stamp duty on first time buyers; however, at the other end of the time of life spectrum the tax is proving prohibitive. As the leading independent estate agent in Beaconsfield we are often the first port of call for people looking to downsize or even take their first steps in buy-to-let.
Last Time Buyers
We are increasingly seeing people who are asset rich but cash poor reaching the age of retirement and looking to downsize in order to free up some cash to bolster their pensions. However, these same people are staying put as stamp duty takes a huge bite out of any equity they currently have on their property.
The expense of moving house has long been prohibitive but the removal of stamp duty for those aiming to downsize would mean that people were living in appropriate housing. Children grow up and move out, and so it’s a good opportunity to move to a smaller, more manageable property in preparation for retirement.
This movement means that there are larger homes available on the market for young families who need the space.
Buy to Let Investors
But older people aren’t the only people impacted by stamp duty. In the buy to let market private landlords across the UK are under significant pressure from a layering of tax changes that includes an additional 3% stamp duty surcharge on additional homes. This kind of taxation deters many buyers from entering this market and prevents small scale landlords from investing to grow their portfolios.
While the government aims to increase home ownership as a result of their squeeze on the Private Rental Sector, what is actually happening is that it is driving up rental costs and limiting the choice for tenants across the UK.
In the current economic climate we believe that a reform in stamp duty would stimulate the market and help to bolster the economy. A number of utterings over the past six months have alluded to a reform being on its way, but with the current Government having its hands full with Brexit we may not see any movement on such a reform in 2019.
Get in Touch
If you are looking to buy or sell a property in the Beaconsfield area make sure you come and speak to a member of our team about your property options, you can give us a call on 01494 680018 or email us. You can also find properties for sale in Beaconsfield on our website and follow us on Facebook, Twitter, Instagram and LinkedIn for all the latest updates.