Summer Economic Update – Landlords Reaction

by Property 118

13:46 PM, 8th July 2020
About 3 months ago

Summer Economic Update – Landlords Reaction

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Summer Economic Update – Landlords Reaction

The Chancellor, Rishi Sunak, has just given a Summer Economic Update to the house of commons as the second of three phases to guide the UK through the Covid-19 National Emergency.

The much anticipated, hyped and discussed Stamp Duty reductions increasing the threshold where no SDLT is paid to £500,000 will be introduced with immediate effect until the 31st March 2021. However, the Chancellor confirmed this will be available for ‘buying a main home’ and no such mention was made for second or investment properties leaving landlords and BTL out in the cold.

A £2 billion green homes grant scheme will be accessible for Landlords though and will contribute two thirds of the cost to energy efficiency improvements to all residential homes up to a maximum of £5,000.

The Chancellor said: ” As part of this package homeowners and landlords in England will be able to apply for vouchers from a £2 billion Green Homes Grant scheme this year to pay for green improvements such as loft, wall and floor insulation that could save some households hundreds of pounds a year on their energy bills while creating thousands of jobs for tradespeople.”

The rate of VAT applied on most tourism, accommodation, attractions and hospitality-related activities will also be cut from 20% to 5% until the 12th January. The detail on whether this will include Holiday Homes is not yet clear and further guidance on the scope of this relief will be published by HMRC in the coming days.

New .Gov update on Stamp duty click here:

Higher rates for additional properties

The 3% higher rate for purchases of additional dwellings applies on top of revised standard rates above for the period 8 July 2020 to 31 March 2021.

The following rates apply:

Property or lease premium or transfer value SDLT rate
Up to £500,000 3%
The next £425,000 (the portion from £500,001 to £925,000) 8%
The next £575,000 (the portion from £925,001 to £1.5 million) 13%
The remaining amount (the portion above £1.5 million) 15%

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Comments

Denise G

11:32 AM, 9th July 2020
About 3 months ago

The following statement seems to me to suggest the stamp duty cut does apply to landlords.

"Companies as well as individuals buying residential property worth less than £500,000 will also benefit from these changes, as will companies that buy residential property of any value where they meet the relief conditions from the corporate 15% SDLT charge."

Marie

12:03 PM, 9th July 2020
About 3 months ago

The stamp duty bands only work if house prices are similar for the country. London and the Southeast is a lot more expensive, which makes the amounts chargeable for anyone that buys there unfair compared to other areas of the country. it is a totally ridiculous tax, effectively a tax on moving/ investment.

Art Dobson

0:35 AM, 10th July 2020
About 3 months ago

I know this is Rishi's 2nd phase but it feels like the 15th when it comes to this government and its assault on landlords.
A wealth tax on the horizon, they will needs to bring in more cash and increase housing supply, easy task if you want to be popular, make it financially punishing to have a btl portfolio, start with making additional purchases harder, then tighten the knot and slowly wring them dry.
In some ways I can't blame Boris, he's a good time guy who wants free money and knows the Conservative core voter is too sane to vote Labour. Rishi also appeals to people of a certain generation who liked Blair and accidentally forget Iraq 😕

Art Dobson

0:37 AM, 10th July 2020
About 3 months ago

Reply to the comment left by Neil Patterson at 08/07/2020 - 13:52
I'm going to eat humble pie.

Kathy Evans

12:32 PM, 10th July 2020
About 3 months ago

Reply to the comment left by Neil Patterson at 08/07/2020 - 13:52
Sounds like way too much hassle - registering online, booking etc for a meal I'm not that bothered about. I usually only go out for a meal when going to a concert or other event, and there aren't any of those, so ...

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