Why London developers want you to buy now
As of April 2016, Stamp Duty Land Tax (SDLT) will increase 3% for anyone buying residential property in England, Northern Ireland or Wales that is not their main residence. This means you only have 3 months to act before you will be paying substantially more than those buying their first home.
The higher rates will not apply to purchases of caravans, mobile homes or houseboats, or to corporates or funds making significant investments in residential property given the role of this investment in supporting the government’s housing agenda.
Some of the additional tax collected will be used to provide £60 million for communities in England where the impact of second homes is particularly acute.
Use Knight Frank’s UK Stamp Duty Calculator to see how much Stamp Duty you will have to pay. In the example above the Stamp Duty payable for a second home that costs £500,000 is 6% – £30,000.
Linden Homes is currently marketing St Clements in Bow, London E3, to all the Buy-to-Let investors who want to avoid the stamp duty hike. Karen Roake, the sales and marketing director of Linden Homes Eastern said:
“Gladstone Court offers the first release of properties and is a mixture of new build homes and carefully refurbished buildings — both options offer beautifully finished apartments that are ready to move into. The kitchens and bathrooms are fully fitted. The kitchen units, worktops, flooring and appliances are included. (The fully guaranteed appliances included a dishwasher, washer/dryer, fridge/freezer, oven, hob and extractor fan). Similarly, the bathrooms are finished with tiled walls and floors. St Clements offers a great investment opportunity, particularly if you able to move quickly and buy before April 1st. Occupants will then be in before you know it.”
