”The property market will have rather more on its plate in 2016 than the perennial issue of whether house prices will go up or down.”
The BBC was quoted as saying this week.
Will the UK typically follow suit of the US, who raised interest rates this week for the first time since Summer 2006. That’s a decade ago, for anyone who needs reminding! One thing has clarity. Stamp duty rises are an inevitability rather than a fear.
It goes without saying, costs for landlords are due to rise. In fact, it is possible stamp duty rises will deter second-home buyers from pursuing with plans to purchase. With stamp duty rises, landlords rising expenses may push ventures into the unprofitable. Whilst the mortgage market seems to be enjoying a new spring, new changes might dampen progression.
Fresh Fear for Landlords:
As well as stamp duty rises, an erosion of tax privileges enjoy by landlords can be expected next year under the Tory government. Under pressure from generation rent, typically landlord-friendly Tories have taken somewhat of a political u-turn. The change in policy may come as a surprise for many landlords, who felt protected under a Tory government. After all, it’s been seven years since the UK has seen a rise in interest rates. We are all aware of the persistent predictions of a rise in said interest rates. A separate matter is stamp duty rises preceding them!
With financial forecasts predicting rises in wrong places, what surety is there for 2016 for property owners? Historically low-interest rates have fed into low mortgage rates. As such, many landlords are unprepared for any rise in costs. Will we see a beleaguered rush to purchase homes before the aforementioned stamp duty rises? Will it slow down the housing market?
Landlords sitting on fully geared property portfolio’s may be sitting slightly less comfortably. High mortgage debt may mean high losses in the event of an increase in expenses, such as stamp duty rises. If you are concerned about the liquidity & flexibility of your portfolio, there is help available. At Rescue My Properties, we are at the forefront of landlords affair for over a decade. As such, we continued trading after the downturn as well as clearing in the aftermath. If you need a complete property portfolio check to assess you rate of risk to a rise in costs, contact us now. Leading property experts are available. What’s more, we offer our services on a free-consultation basis.
To discuss stamp duty rises or any other property issues you may be fearful of, call us now.
Head office is available on 020 7127 6536. Alternatively, one of our consultants can be reached at email@example.com
Stamp Duty Rises in the Press:
The BBC discusses stamp duty rises: