Following on from today’s budget statement, George Osbourne has announced that he is planning a new stamp duty rate for people buying homes as buy to let.
This will be 3% higher than the normal stamp duty with the revenue being reinvested back into local communities. But what effect will this have on the Northern property market?
For some parts of the country this new tax will go a long way to control the booming buy-to-let market and give people wanting to a get a foot on the property ladder a chance to do so.
But what will this change mean for the Northern property market?
Danny Luke, Managing Director of leading cash home buyer, Quick Move Now comments;
House prices in the north are considerable lower than in the south and this planned change could see investors deciding to plough their money into the northern property market.
Ahead of today’s announcement, those planning on investing in property in the south may now consider moving their investments further north where properties are cheaper (a lot still under the £125k bracket) to avoid the additional tax.
This potential shift in trend will undoubtedly see property price increase in the north which is great for home owners but people trying to get on the property ladder may find themselves priced out of the market as those in the South East have been previously when investors snapped up the best deal and started to the eliminate the local housing supply.
Combine this with the fact that wages in the North haven’t seen the same inflation as the rest of the country and things could be set to get grim! That said, if Mr Osbourne keeps his promise to build 400,000 new affordable homes by the end of the decade the property market should be more stable, however at this point there are no certainties!