20 May 20.05.2016 Stamp duty, again!
20.05.2016 Stamp duty, again!
Ever growing house prices favour investors, attract capital, and support local city councils through taxation. The Council of Lenders estimated that over a hundred fifty thousands buy to let transactions took place in the month of March alone, a dear increase over 30% from the projected estimates. A 3% duty was imposed for buy to let properties and second home purchases as a way for councils to capitalise on the lucrative property sector and have a slice of the pie to themselves. The buy to let market is witnessing the increase in cash purchases both from foreign and local buyers. This is an indication that sophisticated cash rich investors still value property investments despite the increase in taxation. In fact, cash led transactions increased over eighty percent! This is no surprise. The property investment in London and in UK in general provides one of the best capital growth opportunities available today. To simply put it, no government bonds, alternative investment vehicles and personalised investment platforms offered by private banks can come anywhere close the opportunities offered by real estate in the UK. Even with the Brexit looming upon us in the very unlikely case of the exit there will still be more people willing to buy then properties available.