I recently read
an interesting article looking at the rise in the stamp duty that has been paid
in the south west. New figures show a
£1.5 billion rise in the total Stamp Duty Land Tax yield from residential sales
in 2013/14.
While conducting
sales appraisals I am finding that I have to discuss stamp duty with more and
more sellers, especially when looking around the £250,000 mark and in my
opinion it is also restricting some house prices.
There have been
around 50,000 transactions in Devon, Cornwall and Somerset alone and those who
read my recent article “How affordable are Exeter properties?” will know the
area is not the easiest for first time buyers – these transactions gave the
treasury around £250 million in 2013/14.
It is
interesting to see what happens when you work out the current and future income
the treasury may receive. The average
price paid for a property in Exeter over the past three years was £232,730 and
there were 7088 transactions, bringing in £16,495,902.50 in stamp duty. The current average price for a property is now
£256,675 pushing it over the 3% threshold, due to an increase in values of
around 8.5% over the last year, and assuming the number of transactions remains
the same over the next three years, this would then bring in £54,579,372!
If you are
looking to invest in property come and talk to us at our office on South Street
so we can work out the best options for you.
If you would
like to read the article you can find it here; http://www.exeterexpressandecho.co.uk/House-price-rises-Devon-prompt-stamp-duty-reform/story-23044044-detail/story.html
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