Second home buyers to face stamp duty surcharge rise | Today's Conveyancer

Today, Chancellor Rachel Reeves introduced Labour's inaugural budget following their election to government. The budget emphasizes reducing national debt, enhancing the UK economy, and providing safeguards for working individuals.

Reeves stated that there would be a rise in Stamp Duty for additional properties.

Starting Thursday, buyers of second homes will see an increase in the stamp duty land tax surcharge by two percentage points, raising it to five percent.

The Chancellor promised that this initiative will assist more than 130,000 extra transactions for individuals purchasing their first house or relocating over the next five years.

Industry experts have voiced their frustration over the increase in stamp duty, noting that it occurs amid a growing demand from renters.

Angharad Truman, the President of ARLA Propertymark, shares her thoughts on the rise in Stamp Duty for additional properties:

"We're witnessing an increasing gap between the available private rental properties and the rising demand from tenants. It's frustrating that the UK Government chose not to tackle this crucial problem in its Autumn Budget. Instead, they have introduced another setback for landlords by raising Stamp Duty on second homes."

The private rental sector is essential for providing housing across the country, with more than 4.6 million homes in England. It's vital that the UK Government avoids driving landlords out of the market.

To ensure that people can secure affordable private rental housing, we emphasize the need for support within the private rental market. This includes encouraging landlords to invest, rather than overwhelming them with excessive regulations and rising expenses.

While this might discourage some investors, it could also lead to a greater selection of properties for first-time buyers.

Has the company's rate also gone up to 5% for rental purchases?

The workload that comes with this last-minute increase is absolutely overwhelming for professionals, especially at the end of the month. Buyers who decide to go ahead will face additional checks regarding their funding sources, among other tasks. Plus, there are several cases expected to close in the next few days that will now fall through and won't proceed.

If you've already made the exchange, it probably won't cause you any problems, right?

Is this definitely true if it has already been exchanged?

Through the BLG online community. If you're not a member, contact [email protected].

I believe that transactions with "higher rates" are affected by an increase from an additional 3% to 5% if:

(a) They finish (or carry out significantly) on or after October 31, 2024, unless

(b) Following a contract made before October 31 (as long as it remains unchanged after that date and the buyer stays the same).

Without much fanfare, the flat rate for businesses purchasing properties valued over £500,000 is set to rise from 15% to 17% during the same period.

"It looks like there's still time to sign the contracts today to secure the current rates."

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