And now, the end is near...
For first time buyers anyway if they want to claim stamp duty land tax relief as it will soon be expiring. First time buyers purchasing a property up to £250,000 have been saving a maximum of £2,500 in stamp duty. If your purchase does not complete by the 24th March 2012 then you will have to pay the full stamp duty on the purchase price.
Looking at the property market in general, the financial crisis with banks being reluctant to lend and now the first time buyer relief is coming to an end, its not surprising that there are some negative feelings about the property market. We know that we need lots of movement in the first time buyer and lower end of the market to facilitate house moving where people can move up the property ladder.
However, despite all of this, people still move, they just change their habits. Families are helping out more with parents frequently putting up deposits or paying for fees to enable their children to get onto the property ladder. Friends are purchasing properties together as joint investments as they can't afford to buy on their own. Some families are selling up their own homes to pool their resources and buy one larger home together to save money in the long run.
It seems that as a country we have a very short memory, things are not so different from the credit problems in the 90's, the 80's and further back. The cause of the crisis might be different but the facts remain the same, you can't spend what you don't have. As of the 25th March 2012, first time buyers will have to have a little extra saved up to cover stamp duty if they want to buy a property in the £125,000 to £250,000 price bracket.
If you require further information on the above issue or any other property matter, please contact a member of our Property team on 01553 660033.
