Low Income Buyers Exempt of Stamp Duty
March 12, 2008
The Chancellor Alistair Darling has announced today in his first budget that low-income property buyers will not pay stamp duty, if they buy a home through a government sponsored scheme.
The Chancellor has revealed low-income home buyers would only have to pay stamp duty once they own 80 per cent or more of the property.
Mr Alistair Darling also exposed that more resources will be made available for other government schemes, to increase the supply of inexpensive housing. The shared-equity schemes will help key workers such as police and teachers, who may now get a low-cost loan if they wish to buy a property.
It was also revealed that around 95,000 households have been helped by these schemes; however there was little support for first time buyers who earn too much to be eligible for these schemes.
Popularity: 13%
Capital Gains Tax Cut Could Affect Rural Housing Costs
March 5, 2008
The pressure is on for The Chancellor Alistair Darling to act upon preventing significant cuts in CGT (Capital Gains Tax) as it could trigger a second-home boom.
The Government’s Rural Advocate, Stuart Burgess appealed to abandon the plans for the reduction in CGT on second homes from 40 per cent to 18 percent. Active campaigners and opposition MPs have also warned that property speculators could potentially use could take advantage of the tax reduction to control the price of rural housing.
Stuart Burgess expressed he was dissatisfied at the CGT cuts and suggested setting up a new fund to invest in local housing funded by council tax on second homes. He said:
In some rural areas the proportion of second homes is very high. This can significantly affect local housing affordability and the sustainability of communities.
Kate Gordon - a spokesman for The Campaign for the Protection of Rural England (CPRE) – said:
Property in rural areas should go to people in housing need. There is a large shortage of affordable housing at the moment. Reducing this tax will lead to a wave of speculation and it could fuel further price rises.
The Chancellor needs to assess the implications of these changes and we are not sure he has thought this through properly.
The CPRE advised the tax cuts could get more people out of the housing market.
Popularity: 9%
Cheaper Eco-Friendly Homes: Dream or Reality?
February 28, 2008
The president of the National Association of Estate Agents (NAEA) called for action in making homes greener. Stewart Lilly is keen to see more work done regarding existing homes suggesting that devices which make homes more energy efficiency should be VAT-free. He added:
[VAT rebates] can only encourage people to introduce more energy efficiency into their existing homes
Buy-to-let landlords would also benefit from this kind of VAT change, if they can also take advantage of this tax exemption in their properties as they could decrease energy bills. Consequently people would be keen to live in cheaper eco-friendly homes.
Popularity: 16%
Capital Gains Tax Changes in the Next Budget
February 27, 2008
Some investors will benefit from one change to the capital gains tax (CGT) which has already been confirmed for the next budget. This measure concerns the link between time to the level of tax paid by an investor when he sells on a property, which will not start at 40 percent for the first three years of ownership and decrease by 2 per cent every year thereafter to 24 per cent after 10 years. This will allow more property market fluidity because will help investors who have owned properties for short periods by paying less tax, and consequently not being at a disadvantage against sellers who hold properties for many years.
Popularity: 15%
Buy-to-Let and Stamp Duty Proposals for the Next Government Budget
February 22, 2008
Stamp duty is one of the biggest nightmares for any property developer. The National Association of Estate Agents (NAEA) set out some proposals to deal with stamp duty issues. The NAEA proposals include increasing the one per cent threshold to £200,000 and £300,000 for the two percent threshold, for £2 million-plus properties they’ve proposed a 4.5 percent tax.
The NAEA also wants to cut the capital gains tax (CGT) which benefits primarily buy-to-let investors aiming to make it easier to buy and sell property thus add flexibility to the property market. Commenting on this proposal, Stewart Lilly, the president of the NAEA stated:
we would also like to see a revision of capital gains tax for buy-to-let investors who are fast becoming the backbone of the private rental sector
Let’s hope that the chancellor Alistair Darling take these proposals into consideration for the next budget, just weeks away. Currently, the UK property market is facing many challenges therefore this is the time for all interested parties to bring their ideas to the table.
Popularity: 10%
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