Mar 10, 2017 PROPERTY SALES SHARE

Spring Budget 2017


POSTED IN PROPERTY SALES

Calls for relief on stamp duty charges that would boost movement in the property market were ignored in Chancellor Philip Hammond's Spring Budget this week.

Despite the Government's own admission in last month's Housing White Paper that the property market was "broken", tax thresholds will remain at the levels introduced in 2014.

Currently, home buyers are liable for the tax when purchasing a residential property or a plot of land costing more than £125,000, or £40,000 for a second home.

Nick Leeming, chairman of estate agent Jackson-Stops & Staff, says: “Homeowners are left feeling disheartened and frustrated once again today, as Philip Hammond neglects to address the stamp duty elephant in the room.

"Despite evidence showing the housing market has slowed since the stamp duty reform of December 2014, and the more recent three per cent second home surcharge, the Government is sticking to its guns and refusing to give the nation a break."

Currently, stamp duty is charged in bands, with zero per cent on the first £125,000 of the purchase price, two per cent between £125,001 and £250,000, five per cent from £250,001 to £925,000, 10 per cent from £925,000 to £1.5 million, and 12 per cent above that.

These thresholds are set to remain in place at least until November, when the Chancellor will unveil a combined Budget and Autumn Statement

UK house price growth will be cut by almost half by 2018, according to predictions from the Office for Budgetary Responsibility (OBR).

The OBR has released its predictions for house price growth along with chancellor Philip Hammond's first (and last) Budget today, and it seems house price rises will be tempered over the next five years, dropping from an annual inflation of 7.6 per cent in 2016 to just four per cent in 2018.

Then, in 2019, growth will edge upwards to 4.4 per cent, reaching 4.6 per cent in 2021.

The house price trend is set to follow on from a squeeze in disposable incomes; the OBR has forecast zero growth in disposable incomes this year.

Commentators have argued that Hammond should have done more to get young people on the housing ladder; many were hoping for cuts to stamp duty land tax.

The above information has been gathered by Life-Style Property Services from several sources.

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