Living in the most expensive and densely populated part of the UK as the capital and the South East, the subject of property is never far from many people’s minds.
Therefore, a call on the Chancellor of the Exchequer to scrap Stamp Duty to boost the economy is of great interest to more than just ourselves, as solicitors dealing with conveyancing in London.
Philip Hammond must scrap stamp duty on property sales to solve the housing crisis and boost the economy, claims respected think tank, The Adam Smith Institute.
The organisation said the tax, which raised £11.7billion last year stopped people moving jobs and kept them in houses too large for their needs.
It said that penalising older people for downsizing, stamp duty makes the number of larger homes on the market for growing families even smaller.
The Adam Smith Institute called on Mr Hammond to cover the cost of scrapping stamp duty by raising council tax on the most expensive homes.
A spokesman for the institute said Britain’s productivity problem is in large part a mobility problem as many cannot move to where the best jobs for them are because the houses aren’t being built, and it’s exacerbated by stamp duty keeping older people in family homes that are too large for them.
Interestingly, this comes on the back of a report earlier in the year by the London School of Economics and the VATT Institute for Economic Research saying the rate of home moving would be 27 per cent higher without stamp duty.
Currently the rates of stamp duty are:-
No stamp duty on property under £125,000
- £125,000 – £250,000 is 2%,
- £250,000 – £925,000 is 5%
- £925,000 – £1.5m is 10%
- Over £1.5m is 12%
It doesn’t take long to work out that it is a sizeable amount of money to find for people caught up in property transactions.
Whilst we suspect this is something that will not happen, we welcome all pro-active attempts to help the economy.
It certainly is a unique time we are living in and anything that can boost people’s lives is to be welcomed.
If you are thinking of moving home and need help and advice regarding stamp duty, or any other aspects of conveyancing, please call us at Pindoria Solicitors, we are happy to talk through your situation with you.
It is with intrigue that we have read recent research from Countrywide Estate Agency showing that one in 20 offers on properties in the South East that were originally accepted by a seller in 2017 were then rejected in favour of a higher one from a different buyer.
It showed the number of properties on which gazumping has occurred is up by 35% on 2011.
The gazumping tactic is a fraught business when a buyer has an offer accepted on a property, they then naturally start to emotionally move in.
It is a terrible disappointment when an estate agent rings to tell them that someone has made a higher offer and the seller is now going to accept the other buyer’s offer.
Gazumping now is a little perplexing as the level of residential property transactions has fallen from its recent high. Continue reading
In these somewhat uncertain times, it’s always good to hear positive news, which needs highlighting to negate the doom and gloom that often rules the media.
With this is mind, we at Pindoria Solicitors are glad to hear of new research which seems to suggest overseas investors are putting their money into London’s property market, in the wake of recent falls in the value of sterling.
Being both commercial and residential property legal experts, we have read the report from large commercial estate Continue reading
Many homeowners will know that Japanese knotweed is a sizeable issue, which can badly affect property.
Therefore, the recent case of a home owner who has been awarded damages against his neighbour, after his property became affected due to knotweed on neighbouring land is of great interest to many.
Confidence is a state of mind, which drives forward the wheels of industry.
The right words or wrong ones from the influential can have a huge bearing on all our lives, so with this in mind news that agreed property sales are at a peak not seen since 2007 is reason for optimism.
Being conveyancing experts in London and the South East we find ourselves very much at the hub of the property market, which is a key indicator of the nation’s health, and it’s good when we hear news to help keep the economy ticking along nicely. Continue reading
Money is a prickly subject and especially so when it comes to money owed, whether it be to businesses or individuals.
After all, cash flow is vital to help businesses and individuals function, and payment of invoices is a common problem for pretty much everyone.
So what is needed when it comes to disputed debts is to be sure of the right course of action, whether it be a strongly worded letter right through to enforcement of court judgment in the UK, EU and outside the EU. Continue reading
The Dispute Resolution Department at Pindoria Solicitors regularly receives instructions from landlords for possession of residential property.
I recently handled an interesting matter, where instructions were received after proceedings had already been issued. Proceedings were issued on the basis that the occupier had no right to occupy the property; therefore the occupier was a trespasser, or what some would term as squatter (‘the Occupier’). As from 1st September 2012, squatting in residential property became a criminal offence; landlords now have a choice of going through the Court possession process or approaching the police. Continue reading
As solicitors, we often have the task of trying to simplify what may not always seem straightforward and one of those matters is issues surrounding inheritance tax.
For instance, there is some confusion since the introduction of the Main Residence Nil Rate Band (RNRB) in the Summer Finance Bill of 2015, that couples will, by 2020 be allowed to leave an estate on death worth up to £1million before Inheritance Tax becomes payable. Continue reading
As many of you may be aware, changes proposed by Chancellor George Osborne which take effect at the start of April governing the buy to let market, will affect everywhere in the UK, but particularly London where prices are considerably higher than the rest of the country. As things currently stand you must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price, and what you pay depends on whether the property is residential or non-residential.
Our current thresholds are £125,000 for residential properties, and £150,000 for non-residential land and properties, with stamp duty on an increasing scale dependent on the property price above the threshold. Currently, on buy to let properties the SDLT rate is 2% of the purchase price from £125,001, 5% from £250,001, 10% from £925,001, and lastly 12% on anything above £1.5 million. Continue reading
As we enter another year of potentially low interest rates, something which we have become somewhat used to, it may be time to think again about your options.
We’ve had several years now of low rates following the fallout from the credit crunch, and whilst this is great news for many; we do find that there are those who are not taking full advantage of the situation. Recent times have seen lenders offering some great deals and many people throughout London and the south east could save vast amounts of money by just switching lenders. Continue reading
The Stamp Duty rate payable on purchases of buy to let and second homes will be increasing considerably from 1st April 2016; but are you aware why the Government is making such a drastic change in the level of stamp duty payable?
From 1st April 2016 more transactions will attract stamp duty than before as the threshold is being lowered to £40,000 (from the current £125,000). That means that not only will there be an extra 3% duty payable on buy to let purchases or second homes, but there will also be a lower threshold to meet before stamp duty becomes payable. Considering that a vast majority of properties in the current market will be over £40,000, this will impact many of us. Continue reading
Many landlords across London and the South East will be unaware of the Smoke and Carbon Monoxide Alarm (England) Regulations 2015 which came into force late last year.
However, it really is worth noting because these regulations are designed to make private residential landlords take practical steps to ensure the safety of their tenants, and thereby minimising the possibility of accidental death from Carbon Monoxide poisoning. Continue reading
The recent ’increase’ to the Nil Rate Band for Inheritance Tax has caused a lot of chatter amongst practitioners and academics. How beneficial will it really be?
We at Pindoria Solicitors are finding that a lot of people are not fully aware of the circumstances under which the new exemption will work and have misconceived the increase as being a blanket £500,000 for each and every person. Continue reading
For us as a law firm helping many a landlord at their wits end due to a dispute with a tenant, it can be frustrating the media image that is painted in such disputes. It generally casts the landlord as a wealthy bad guy trying to make the poor weak and innocent tenant homeless. We are often asked by Landlords to carry out lawful and effective tenant evictions. Continue reading