Estate Agent Predicts Rush To Beat New Stamp Duty Rates

hugh town from garrisonChanges to the level of stamp duty that second home buyers pay can “only be negative” for Scilly, says St Mary’s Estate Agent Ian Sibley.

Chancellor George Osborne announced the change in Tuesday’s autumn statement, when he explained how holiday home sales can price locals out of the housing market in Cornwall.

From April, if you buy a second home you’ll have to pay 3% higher duty than the permanent resident rate.

Regular homes selling for up to £125,000 are stamp duty exempt, but second homes in this category will soon attract a charge of 3% of their sale value.

The next band of homes, worth up to £250,000, currently require 2% stamp duty, but second home buyers are set to pay more, at 5%.

And the next range, up to £950,000 price, attracts 5% duty if it is a first home but that will rise to 8% if it is going to be used for a second home or letting.

Ian Sibley believes that people buying lower priced properties will notice the greatest impact as they often have a firmly fixed budget.

And there could be a flurry of sales before the new rules begin. Ian expects people will try and close deals before the new fees are applied in the spring.

4 Responses to Estate Agent Predicts Rush To Beat New Stamp Duty Rates

  1. a local who is not on the council November 27, 2015 at 1:15 pm

    Well done Mr Osborne, well done.

    This can only be of benefit to Scilly.

    • Pete November 27, 2015 at 7:57 pm

      The estate agents will price accordingly. They will still need a sale and the commission that goes with it. Also all the locals who are selling will need their bank accounts topped up.

      • Margaret Keppler November 28, 2015 at 8:35 am

        So Pete,
        If we follow your line of thinking its wrong to sell a house? I don’t see how that gets your poor downtrodden underpaid local family into housing any more easily? It would leave you waiting for the altruistic folks like those developing the “rebuilt” home at Holy Vale to forego market value at resale and gift you a property at build cost.
        Do us all a favour and stop whingeing while you wait!

        • Pete November 28, 2015 at 9:35 am

          Margaret. I didn’t say it is wrong to sell a house. The article is about stamp duty on second homes. As there is a housing shortage on the islands, I do believe that it is totally wrong to sell property for second homes. Started of by some of the locals for pure greed.