Landlords and estate agents alike are rushing to complete last minute deals, before the increases in Stamp Duty Land Tax come into force tomorrow.
Those purchasing a buy-to-let property or one that is not their permanent residence face a 3% Stamp Duty surcharge.
From midnight tonight, Stamp Duty on a property sold for £200,000 will rise from £1,500 to £7,500. Investors feel that that their problems have been extended, due to some of the finer details of the changes only being announced in the Budget a little over two weeks ago.
Rob Hailstone, of the Bold Legal Group, notes that the last few months have, ‘been very chaotic,’ but the, ‘real problems will be today.’
‘It’s been ridiculously busy. Buyers have been saying they want to rush it through, because they don’t want to pay the surcharge,’ Hailstone added.
Last-minute rush to beat Stamp Duty rise deadline
Of course, the deadline is technically midnight tonight. However, more practically, investors have until the banks close today to ensure their deals are completed.
Martin Baum, President of the National Association of Estate Agents, acknowledges, ‘it’s been a crazy day. We’ve all got a bottleneck and a huge amount of deals before the deadline. I’ve heard of estate agents and conveyancers staying open till 10pm and then opening again at 5am this morning.’
Many buyers who are not planning to purchase for buy-to-let or second property purposes are also being caught up in the chaos, with many involved in chains.
Information for landlords on the Stamp Duty bands can be seen in the table below:
|Stamp Duty Bands
||Buy-to-Let/ 2nd home
|Up to £125,000
|£125,001 to £250,000
|£250,001 to £925,000
|£925,001 to £1.5m