The Chancellor's "Robin Hood" approach to Stamp Duty Land Tax
(SDLT) could inadvertently prompt a short term boost for the
residential housing market, according to chartered surveyors and
estate agents Bigwood in Stratford-upon-Avon.
Bigwood director Graham Carter said that while the two-year
holiday for first time buyers of homes valued at £250,000 or
less would have limited impact in Stratford-upon-Avon, the
Chancellor's decision to increase Stamp Duty from April 6, 2011 on
properties over £1 million might prompt movement at the top
end of the market.
"Stamp Duty Land Tax - whether at four per cent or five per cent
- is chargeable on the whole of the purchase price, not just the
element over £1 million.
"This means that by buying before April 6, 2011, you can save at
least £10,000 or more, depending on the purchase price
agreed.
"In Warwickshire and the Cotswolds, you don't have to look far
to see where sums like £25,000 could be saved, and this is no
small beer - even for millionaires."
He said the SDLT changes had been welcomed overall by the RICS
as at the lower end the cut meant that 90 per cent of first time
buyers would now not pay any Stamp Duty, but property sales could
still be held back by the ongoing lack of housing supply and
restricted mortgage lending.
"In reality, we need to wait until we have the result of the
upcoming General Election and then we will see if this five per
cent rate will definitely be levied from April 6, 2011.
"But at present we need to assume that it will. The marketing of
major country properties requires time and we may see a surge of
inquiries about sales at top end of the market this Spring."
Bigwood is one of the Midlands' leading firms of chartered
surveyors and auctioneers and has offices in Stratford-upon-Avon,
Henley-in-Arden, and in Edgbaston and Colmore Row in
Birmingham.
Bigwood's next Stratford auction will be at the end of May. Lots
already scheduled include Alcester Warren Farm, Whitemoor Lane,
Alcester, which has a guide price of £500,000 and
£700,000 and has been in the same family since 1901. Other
lots are sought and interested parties should contact Di Coates in
Bigwood's Henley-in-Arden office on 01564 794155.