This month Taj analyses the first set of financial figures for 2016 around the housing market. January has shown an almost 10% year-on-year increase in house prices.
From April onwards those looking to buy a second property will have to pay an additional 3% in stamp duty.
The Chancellor George Osborne will announce the Budget next month. The targets that have been set show he is trying to get rid of the deficit. It is widely anticipated that for this to happen, he will need to increase taxes.
Taj also speaks about a number of lenders that have released competitive products for the London Help to Buy scheme, which was launched this month.
Taj will be back with updates regarding the Budget next month.
Hello and welcome to my blog, some interesting news has emerged now that we have January out the way in the new year.
We’ve got our first set of financial figures around the housing market. January has shown an almost 10% year-on-year increase in house prices, little surprising you could say given the number one the time of year and some of the things that are happening in the economy around things like stamp duty and buy to let, but that very last thing has actually contributed to a mad rush for people to buy investment properties before the stamp duty hike kicks in.
Just as a reminder from April onwards you'll be facing an additional 3% on Stamp Duty for any second homes or buy-to-let properties. Ouch you may say if you are a buy to let investor but it doesn't seem to have abated house prices if you look at the year-on-year trend and the month-on-month trend there has even been an increase from December to January in house prices which is quite unusual for an unusually slow time of year.
Looking forward, we are having the next chapter of Mr Osborne's Budget being released next month which is very interesting if you look at some of the targets that the chancellor has set within this parliament. He's looking to get rid of the deficit in this parliament and in order to do that it is widely anticipated he's going to have to increase taxes, more tax increases potentially on the way sorry to be the bearer of bad news, but let's see how that unfolds next month.
The last point I just want to talk to you about is the thing that affects first time buyers and being able to buy properties via the London help to buy scheme. The good news is lenders have responded. 10 lenders have released new products at really competitive rates. The big three lenders for contractors you’ve got Halifax, you’ve got the Lloyds Banking Group, Nationwide, they’ve released some market leading rates for the new help to buy scheme that the Chancellor has launched. Details of those rates are available on our website, but if you do need to make an enquiry please do get in contact with us directly but good news for those of you looking to get a foot on the ladder in 2016 by the use of the government incentive.
I’ll speak to you in a bit more detail next month with regards to the budget the Chancellor has announced, in the meantime thank you very much for watching.