What lies ahead for the property market and landlords in 2016?
2016 is set to be a busy year for the housing market, with changes affecting second-home buyers and buy-to-let landlords already confirmed.
The recent decision to raise interest rates in the US has raised questions as to whether the UK could follow suit in 2016. However many are now predicting that this will be pushed back again to early 2017.
So what changes have been confirmed? And how will these affect landlords in 2016?
Increases in stamp duty
Form April 2016 stamp duty rates will rise for anyone buying a home that is not their main residence.
This means that if you are buying a second home in 2016, there will be an extra 3% stamp duty charge on the purchase.
For example, anyone buying a second home or buy-to-let at Â£200,000 before April will currently pay Â£1,500 in stamp duty. This is based on paying 0% on the first Â£125,000 and 2% on the portion from Â£125,001 to Â£250,000.
From April those stamp duty costs will increase to Â£7,500, with 3% owed on the first Â£125,000 and 5% on the portion from Â£125,001 to Â£250,000.
Checking tenants have a right to rent in the UK
From February 2016, the burden will fall on landlords to ensure their tenants have a right to rent in the UK.
Landlords who rent their property to a person who doesn’t have a right to rent in the UK could be fined up to Â£3,000.
In order to avoid penalties, landlords will need to ensure the property being rented is the main home of their tenants. They must also obtain copies of documents including UK or EEA passports, identity cards, travel documents or Home Office immigration status documents.
How will this affect the property market in 2016?
Rents are unlikely to increase to cover the cost of the stamp duty increases. The government’s intention is ensure private landlords are not forcing homeowners and especially first-time buyers out of the housing market.
With stamp duty changes set to come into force from April 1st, it has been predicted that many buy-to-let landlords will be looking to push through purchases before 31st March.
Speak to Farnworth Rose for advice on buying a property in 2016
If you are looking to purchase a property in 2016, speak to the expert conveyancing solicitors at Farnworth Rose.
They can provide you with a clear cut conveyancing quote and up to date advice on any costs involved in the purchase process.
To receive your clear conveyancing quote, call us on 01282 695 400.
Or simply click the button below to complete our quick online conveyancing quote calculator.