The
Chancellor in his Autumn statement 4th December 2014,
makes changes to stamp duty charges, with the residential
slab system abolished altogether. In future each rate
will only apply to the part of the property price that
falls within that band like income tax.
Here
are the new marginal rates.
Homebuyers
will pay no tax on the first £125,000 purchase price
Then
2% on the portion up to £250,000.
Then
5% up to £925,000.
Then
10% up to £1.5 million.
Then
12% on everything over that.
The
purchase of a £20m mansion in London will now attract
stamp duty of £2,291,175.00. Will London property
prices decline sharply under this tax pressure.
UK
home buyers struggle to afford to buy, priced out of their
own market, but wealthy foreign investors from distant
lands snap up UK property.
Previously
George Osborne stepped in to help the beleaguered housing
market by offering a new Government underwritten Guarantee
Equity Loan Scheme to help new and existing homeowners.
Providing purchasers can raise a deposit of 5% of the
value of the property they want to buy, they can then
borrow up to a further 20% from the Government on an
interest-free basis, which then leaves 75% to be financed
by a traditional mortgage.
The Government is also running a £12billion mortgage
guarantee scheme designed to encourage mortgage lenders
to offer up to £130billion-worth of high loan-to-value
mortgages. It
will be providing guarantees of up to 15 per cent on homes
worth less than £600,000. It is set to be introduced
in January 2014.
This initiative will create added stimulus to the housing
market and revive buyer interest, so get those properties
advertised on Homes
On The Net
The
latest immigration statistics released in 2015 indicate
a net migration to the UK hitting a new record of 330,000
in just one year. Equivalent in population to a City the
size of Nottingham or put it another way 827 immigrants
checking-in to Hotel UK every 24 hours.
The
UK is quickly creating increased and massive housing problems.
With a burgeoning population and an influx of migrants
arriving every day from other EU countries inevitably
pushes up house and accommodation prices. Wealthy foreign
investors are also pumping up house prices by buying multiple
numbers of prestigious homes, especially in London. We
are told that London is now 40% owned by foreign investors.
With the threat of a Mansion Tax now lifted it is anticipated
that a renewed surge of wealthy foreign property buyers
will be snapping up quality London property. UK property
is an excellent investment, but the average cost of property
now forces many UK home buyers completely out of their
own market and according to a recent Nationwide Building
Society report the value of property has risen significantly
year on year, taking the average price for a UK home to
£196,514, but the average price of a property in
the London is £462,799
So
the typical UK home is now worth £196,514 with property
prices stabilising or increasing, but currently around
827,000 households in the UK are estimated to be in negative
equity. In most areas new
mortgage approvals down by 60% over the last two years,
but at least major mortgage providers are agreeing to
wait three months after falling into arrears before initiating
repossession proceeding.
Property repossessions are running at approximately 900
per week with estimated arrears cases totalling 200,000.
Sources indicate house sales at a 30 year low. Families
in some areas who have their homes repossessed can face
a six-year wait for social housing. Home repossessions
at 12-year high.. Bank of England also suggest that up
to 1.2 million home owners face negative equity.
Sellers
and Buyers Beware!
Recovery
in the property market could become suffocated as new
lending proposals are implemented. Even more so if interest
rates start to increase. Home ownership for a large portion
of the population will be nothing more than a pipe dream,
but a surge in property buying is expected due to pent-up
demand.
Greater
emphasis will now be given to the following:
1/
Detailed income checks for all mortgage borrowers
2/
An end to fast-track mortgages where loans are approved
without detailed checks.
3/
Tougher affordability tests to ensure borrowers can cope
with rises in rates
The
European Commission also want to chip in with their pennyworth
by introducing new regulation which would give prospective
borrowers a compulsory 10-day cooling off' period
for reflection' when applying for a mortgage and
it also aims to standardise European mortgage markets
Research
has indicated the Buy To Let market is booming.
FACT:
Empty
Homes Statistics 2013 - How Many Homes Are Empty?
635,127
empty homes are currently empty in England according to
the 2013 Empty Homes Statistics
In
Europe prices for most types of property have fallen substantially
during the last 12 months and in some instances by as
much as 75% and in the Andalucia region of Spain for example
there are around one million empty properties.
FACT
2:
The
UK Revenue departments collect about £65billion
a year in various forms of property taxes. The highest
level of taxes in the world.