Stamp Duty Land Tax when you buy property

HOW STAMP DUTY IS CHARGED AND HOW IT HAS SOARED

 

Before 4 December 2014 stamp duty was charged on the entire purchase price of a property.

Prior to Gordon Brown being in charge of the nation's finances stamp duty was a flat rate of 1% above £60,000.

Additional levels were added of 1.5% above £250,000 in 1997 and 2% above £500,000.

As house price inflation took off, Mr Brown decided to cash in further by raising the tax again to 3% above £250,000 and 4% above £500,000 in 2000.

The 1% initial level was raised to its current threshold at £125,000 in March 2006.

George Osborne raised stamp duty to 5% above £1million in 2011, and 7% above £2million in 2012.

Despite the punitive nature of the higher bands, they have never risen in line with the huge house price inflation that has been seen since their introduction.

From 4 December 2014 stamp duty will be charged on the purchase price at a sliding scale as follows:

 

£0 - £125,000 - 0%

£125,001 to £250,000 - 2%

£250,001 to £925,000 - 5%

£925,001 to £1,500,000 - 10%

Above £1,500,000 - 12%

To calculate what stamp duty you will pay please use the calculator tool below:



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Help to Buy scheme – Is it driving up prices? – March 2014

 

Help to Buy scheme – Is it driving up prices? – March 2014

Large numbers of mortgage lenders and brokers are predicting part of the government's Help to Buy scheme will be withdrawn early because it is artificially inflating house prices, according to an industry survey.


Research by the Intermediary Mortgage Lenders Association (IMLA), a group made up of banks and building societies that offer loans through brokers, found growing concerns that rising house prices could cause the chancellor to pull the plug on the part of the scheme that guarantees 95% home loans before the end of its planned 3 year term.


A key criticism of the scheme has been that it drives up demand for properties without increasing supply.
Source: The Guardian

 

Changing tenant demographic – February 2014

Changing tenant demographic – February 2014


There has been a significant change in the age and type of tenants living in the private rented sector in England, Scotland and Wales, according to analysis from Countrywide Residential Lettings, the UK’s largest lettings agency.


The number of people aged over 30 living in rented accommodation in January 2014 increased 5.8% compared to January 2013. This age group now equates to 59.3% of all tenants. 


The number of families living in the private rented accommodation has also increased in most regions, with London seeing the greatest year-on-year increase of tenants living with children.


According to the ONS, 22% of 20-34 year olds in London are living at the family home, up from 18% ten years ago. However, London has the lowest percentage of young adults living with their parents than anywhere else in the country.


Source: Countrywide Residential Lettings