06 May 2016? – First quarter review!
‘Overall the local housing market has been healthy and has seen steady house price growth across most property types in the Henley area and I believe that this will continue in the medium to long term. The first quarter of 2016 has seen an increase in mortgage lending and more transactions taking place, compared with previous years, due to the change in the Stamp Duty Land Tax (SDLT) on second homes. Investor buyers in particular, were keen to secure their purchases before the end of March to save themselves the extra tax, which created a very busy first 3 months. This has caused a temporary slowing down of the market in the second quarter as the dust settles. Another influencing factor may be the EU referendum on June 23rd, some home buyers may decide not to enter into the market until we know what the result is.
In addition, the changes to (SDLT) has certainly effected the top end of the market and it has been noticeable that some vendors with properties on the market in excess of £2 million have had to drop asking prices, to make their homes more attractive to try ease the burden on the buyer. For example a purchaser buying a house at £3million will pay £273,750 in SDLT and a £5 million house will have to £513,750 to the Government in tax. If the purchaser is buying the property as a second home at this level, this tax increases to £663,750, which is certainly having a detrimental effect on the market at this level’.
If you are thinking of moving in 2016 please contact Philip Booth Esq to register your requirements or to book a Market Appraisal.
Call 01491 63 53 43 or 07795 42 22 84