There is every chance the March 2020 Budget will be significant for the housing market. The Conservative Government has announced significant plans regarding the UK housing market, and this Budget represents their first chance to bring these changes to the fore.
Stamp duty is crucial in the sales process
Whether you are buying or selling a home, stamp duty is critical. While no one knows what will be announced, there is a growing expectation of stamp duty charges for non-UK residents who buy property. Some experts have tipped changes to the stamp duty threshold.
Richard Donnell is the Director of research and insight at Zoopla, and he has spoken about proposed stamp duty changes in the Budget. Donnell said; “It’s time for the Chancellor to turn his attention to the core housing market and review the price bands and five per cent stamp duty rate that covers averaged priced homes across large parts of London and the commuter belt. No government wants to cut taxes indiscriminately, particularly when losses could be high. However, any cut to the rate of stamp duty could stimulate much-needed marketed activity in southern England in particular.”
Mark Bogard of the Family Building Society, issued an open letter to the Chancellor, saying; “Our view is that SDLT should be reviewed urgently and changes made to the rate to encourage downsizing and free up the market.”
Neil Cobbold, is the Chief Sales Officer at PayProp and he isn’t sure if stamp duty will change in this Budget. He said; “Stamp duty is a hot button for consumers and property professionals, so the calls to reform the system are always plentiful in the lead up to a Budget. It appears that the Prime Minister has put any plans to overhaul the controversial tax on ice. However, Boris Johnson has previously said that stamp duty rates are ‘absurdly high’ so there could be changes later in his tenure.”
Cobbold also said; “In the meantime, property professionals and consumer groups will continue to lobby politicians to reduce the pressure. Reconsidering the three per cent surcharge on additional homes and the tax rates which affect the very top end of the market would be a good first step.”
There is a broad range of opinions on this Budget
Matthew Hillyer is an associate director of a loans company and he is also hesitant to say stamp duty will be cut. He said; “My response to clients who have asked about stamp duty cuts, has been that it is highly unlikely. A government who is taking a big economic hit from Brexit is not going to be giving out any tax breaks on what is a very good income generator for them. If house sales were slowing down solely due to the level of stamp duty people have to pay then the government may consider reducing the tax. But all the evidence we are seeing since the start of this year is that it was the fear of a Labour government and possible property and wealth taxes that was actually stopping people buying in the prime space.”
At this point, we don’t know what will happen in the March Budget, but whatever is announced, we are here to assist you. We are pleased to say we have helped many Petersfield vendors sell their home, and this remains the case in 2020. We are happy to arrange a property valuation for you, and we take you from start to end with the sales process. Contact Williams of Petersfield today, and we will be delighted to assist you.