Moves are afoot to help manage rises in house-prices.
The government are to consult on a new stamp duty surcharge. This research focused on understanding why people struggle to get on the property ladder or could not move due to rising house prices.
Ministerial findings reveal a domino effect caused by non-UK residents choosing to purchase homes and so drive up the house prices. When considering the costs of houses in London, it is easy to see why the government may be concerned. It is thought that nearly 50% of the residential housing stock in London are foreign-owned.
The new surcharge is proposed to add 1% to all existing stamp duty rates for non-UK resident and non-natural persons purchasing UK residential property.
What does this mean? Well, if the recommendation is approved, this new charge will apply to those living outside the UK and those not considered naturalised UK residents who are seeking to purchase residential property. This will apply to freehold and leasehold purchases, including those bought for rental purposes.
The content in this article was correct on 9th March 2019. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on teacher specific mortgages. Please use the contact form below to arrange an informal chat with an advisor and see how we can help you.