INSIGHT: More Houses Less Landlords Who Knows What The Future Will Bring
New Recruits at Pearson Solicitors to tackle Housing Market Buoyancy At Start of 2016
The first week of 2016 has been a busy one for estate agents and for our conveyancing team at Pearson Solicitors as we look forward to another buoyant year amid changes for the property sector.
The conveyancer tracker SearchFlow shows that 27% of conveyancers believe transaction levels will increase by up to 20% this year.
The buy to let market will obviously take note of the Chancellor’s Autumn Statement announcing a 3% stamp duty land tax surcharge for landlords and people with second homes, and this could have an impact on the house market when it comes into effect in April.
“January and spring are prime times for the housing market and whilst buy to let landlords might currently be rushing to have a deal done before April, housing stock is still considered a good investment and this January we are busier than ever,” said property lawyer, Karen Piontek.
“In fact we are strengthening our team and have recently appointed two new staff in this area to cope with the demand and make sure our high levels of customer service are met. With clients coming back to us for their second and third move it’s good to know we are doing something right,” she added.
Buy-to-let is a key entrepreneurial activity in the UK and there have been predictions that the Government’s squeeze on landlords could see more than 200,000 – one in ten – eventually leave the market or be put off future potential buys.
With each landlord owning an average of 2.5 homes, that could bring half a million homes onto the market. The additional charge applies above the current “stamp duty land tax” rates. This means there will be 3% tax (currently zero) to pay on homes worth up to £125,000.
However, in the short term there could be a rush to buy, said Karen. Mortgage brokers are currently warning that buy to let mortgage applications need to be submitted prior to the end of January to ensure that purchases can complete prior to the changes coming in. One broker has advised that as an industry average it takes 95 days to take a case from start to completion – as of today, there are only 86 days until the new charges take effect.
If you are considering moving over the next few months there may be buy to let buyers in your property sales chain. They have some very important deadlines to meet and this could get the whole market moving, from the bottom up.
“Many of the buy to let landlords I deal with on a regular basis actually own a portfolio of homes under the current stamp duty threshold of £125,000 but I would expect this rush in property buying to continue well into the spring and beyond,” said Karen.
To discuss your house move or your buy-to-let property call Karen on 0161 785 3500
Also in this issue of Insight
- Why Making A Will Should Be Your New Year Resolution
- Why Should I Make a Will if I Have a Business?
- Pearson Solicitors Boost Business Accounts by £1,000s
- Taxing matters use it or lose it
- Transgender issues and avoiding discrimination: new guides for employers, employees and service providers
- More Houses Less Landlords Who Knows What The Future Will Bring
- Commercial Video
Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.
This blog was posted some time ago and its contents may now be out of date. For the latest legal position relating to these issues, get in touch with the author - or make an enquiry now.