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News: Landlords will have to pay more for most properties from today

Fri, 01 Oct 21

The end of the stamp duty holiday means landlords will have to pay more for almost all properties from today.

They have had to pay the three per cent additional homes surcharge throughout the holiday anyway, but an analysis from Rightmove suggests that the ‘whole market’ levels of stamp duty will now apply to 91 per cent of all homes on the sales market.

The portal says just nine per cent of properties for sale in England listed on its website have asking prices of £125,000 or less – and would therefore be exempt from stamp duty, except for the additional homes surcharge.

The ‘nil rate’ stamp duty band reverts today, when properties bought for up to £125,000 will attract no duty.

The zero rate threshold was temporarily raised to £500,000 in July last year and then lowered to £250,000 in July this year, to help the sales market recover from the pandemic.

Rightmove says some 52 per cent of properties in England are priced at £300,000 or less and could therefore be exempt from stamp duty for first-time buyers - a concession that does not apply to landlord purchases.

Since the stamp duty holiday was announced in July 2020, average asking prices have increased by just under £10,000 across Britain for first-time buyers.

Rightmove has updated its regional average asking prices today, with the change indicated since the stamp duty holiday started in July 2020.

– South West, £353,213 (up 10.3%);

– East of England, £395,983 (up 9.1%);

– North West, £227,441 (up 9.2%);

– Yorkshire and the Humber, £219,116 (up 7.4%);

– East Midlands, £264,554 (up 10.9%);

– West Midlands, £260,706 (up 8.7%);

– South East, £453,551 (up 8.3%);

– North East, £165,628 (up 5.4%);

– London, £638,285 (down 0.6%).

 

 

 

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