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.

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