Budget 2018 - what property buyers need to know
- AuthorKeith Yates
Keith Yates, Director of Residential Property at Talbots Law, looks at what the Chancellor’s plans will mean for the housing market
“With the market stalling in the last few months, and fears that house price could fall significantly if the UK leaves the EU without a deal, the following measures could go some way to stabilising the housing market, whilst helping first time buyers get a foot on the housing ladder”
Stamp duty is to be abolished for all first-time buyers of shared ownership properties with a market value of up to £500,000. This will be backdated to the date of the last budget (November 2017), meaning that those who bought a property in the last year should also benefit from the change.
The Help to Buy scheme is being extended by two years, until 2023. However, between 2021 and 2023, the scheme will only be available to first time buyers.
The Chancellor also announced a further £500m will go to the housing infrastructure fund, to promote the building of 650,000 new homes and address the current housing shortage.
But it’s not good news for everyone . . .
Overseas property investors will face a stamp duty surcharge of 1%-3% if they buy a property in the UK, on top of the current stamp duty charges.
And for those who have rented out their family home long-term, and then decide to sell, the reduction in the period that qualifies for relief is reduced, which will lead to a bigger capital gains tax bill.
Talbots Law's Residential and Commercial Property experts are always available to help and advise you – for more information and advice, call us now on 0800 118 1500.