But still, there will be no other changes to any stamp duty for the mainstream housing market. Chancellor Rishi Sunak made an announcement in his Budget confirming that £650m in which the surcharge will be raise and directed to help almost 6,000 rough sleepers into permanent accommodation. Other measure which may affect agents includes:
Agents and other industry figures have expressed disappointment at the stamp duty surcharge, for some relief there have not been further fiscal attacks on the housing sector.
"Overseas buyers tend to purchase properties in prime central London which are completely unaffordable to most homebuyers anyway.
Therefore, this move will not help those that need it most. Ultimately, by energizing surcharges, it is likely that purchasers will factor this additional cost into any offers they make on a property so prices may be pushed down in areas where overseas buyers are purchasing"
Mark Hayward chief executive of NAEA Property
"Stamp duty is a real negative for the property market as it discourages people from moving, particularly downsizers. This has a knock-on effect on the flow of employment, which is bad news for businesses trying to recruit, especially in London and other major cities.
A better route would be to encourage property investors to sell to tenants by offering capital gains incentives. Currently, an investor who sells a rental property is liable to pay capital gains tax at 28 per cent on any profits they make, which is a big disincentive to selling up. If tax relief were introduced, the tenant could also benefit, by receiving some of the proceeds as a mortgage deposit"
chief executive Dominic Agace
Tom Bill, the head of London residential research at Knight Frank, comments:
“The introduction of a surcharge for overseas buyers will bring the UK into line with many other global property markets. Attempts to ease affordability pressures in the wider housing market should be welcomed, although the new measure will need to be monitored carefully to ensure there are no unintended consequences, including for the forward-funding of new-build developments. Furthermore, a wider re-thinks of stamp duty rates are still needed to increase housing market liquidity and maximize any stimulus the government plans to provide to the UK economy.”
"Relieved that the Chancellor has largely left SDLT alone. The two per cent surcharge for non-resident buyers is digestible - look at the property taxes they pay elsewhere"
said by Stacks Property Search, a buying agency, on Twitter.
"An additional two per cent stamp duty surcharge for overseas investors will certainly have an impact on the demand for properties in England's major cities. We will have to wait and see whether disincentivizing overseas buyers causes a shortage of rental homes in the long-term. Changes of this type – and reduced competition from overseas - would encourage more domestic landlords to invest in further properties and provide more homes for the growing tenant population"
added by Neil Cobbold, chief sales officers at PropTech Company PayProp.
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