A government surcharge could lead to unexpected
consequences for the affordable housing sector, as developers face a Stamp Duty
Land Tax bill around 20% higher than pre-Budget levels. The higher duty for
developers is re-focusing sales negotiations and often resulting in lower
prices being paid for development land in an effort to spread the transaction
costs between buyer and seller. February and March saw a surge in property
transactions but, since the controversial three per cent surcharge on second
home purchases was implemented in April, activity has slumped and there has
been an increased trend of sellers reducing their property prices, or accepting
offers up to 10% less than their original asking prices. The average house
price in the UK has fallen to £212,321, down £1,624 on the month, and the
annual pace of inflation has dropped from 10.1% to 9.2%. Read more on the CCH website.
No comments:
Post a Comment