Beverley, UK: Would-be house buyers across East Yorkshire are being encouraged to buy their property before changes to Stamp Duty come in to effect on April 1.
New rules mean second-home owners could see 3% of the value of the property added on to overall costs if they don’t complete on a sale before Thursday 31st March.
Previously, Stamp Duty had been 0% on properties up to £125,000 and then 2% up to £250,000, but the changes could affect a huge cross section of buyers including married couples and civil partners and people who are looking to move without selling.
Parents, who already own their own house and choose to help their children get on the property ladder by taking out a joint mortgage, will also be liable.
Rosemary Key, sales director at Peter Ward Homes said: “We are seeing an increasing number of individuals and couples who are considering buying a new home, whilst also retaining their existing home to give them an alternative source of income and retain an asset for the future.
But what many don’t realise is that they will be caught out by the new extra Stamp Duty rates, which on a £150,000 house will go from being £500 if purchased on 31st March 2016 to a staggering £5,000 if purchased a day later.”
“A house typically takes 5-6 weeks to complete, which doesn’t leave a lot of time for buyers looking to act before this regulation takes hold.
“Our staff are working round the clock to process all the necessary applications so that we can get them all through before the end of March. I’d suggest anyone who is in a position to buy and wants to avoid paying more than they initially envisaged, to get in touch.”