Following the announcements made by the Chancellor of the Exchequer last week, a local team of solicitors has warned how individuals in Shropshire could be affected.
Rachael Hughes, Partner of PCB Solicitors and Head of Residential Property at the firm, highlights what the 3% rise in stamp duty means for those looking to purchase a second property, or a buy-to-let property, and how she thinks the housing market will be affected by this when the changes are implemented in April 2016.
She explained: “The current threshold for stamp duty on residential properties is valued between £125,000 and £250,000 at 2%, and although the stamp duty won’t affect people buying a home or their first property, it will affect the buy-to-let market and those looking to buy additional homes. This will see a 3% surcharge on stamp duty, which will come into force from April next year.”
According to Rightmove, the average house in Shrewsbury costs £201,086, meaning that buy-to-let properties or additional buyers will have to pay £6,032.58 on top of the existing 2% stamp duty land tax.
“Many who were planning to purchase after April of next year will now have to consider the extra stamp duty they’ll have to pay – some may have to delay plans until enough funds are available, whilst others might bring plans forward ahead of the changes being implemented.
“That means that there is going to probably be a spike before the changes and lower number of buyers after April. This could have a negative effect on the housing market, with properties likely to stay on the market for longer, but also a positive by giving an advantage to first-time buyers who previously could have been bought out.”
PCB Solicitors LLP is a modern partnership, with offices in Shrewsbury, Broseley, Church Stretton, Craven Arms, Knighton, Ludlow, Telford, and Worcester. While they have origins back to 1860, the firm is forward-looking and offers a full range of legal advice for both individuals and businesses, including property, family advice and childcare matters, wills, trusts, probate and estate planning, accident and personal injury, litigation, criminal law and corporate and business law.
For further information about PCB Solicitors’ complete range of legal services, please contact the Shrewsbury Head Office on 01743 248148 or visit the website www.pcblaw.co.uk.
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