What changes may be in store for the property market with Boris Johnson as Prime Minister?
The race for the new Conservative leader, and more importantly, Prime Minister came to an end this week, with Boris Johnson winning 66% of the vote. Now the announcements have been made, we take a look at what the possible changes could be for the property market.
Proposed Stamp Duty Reforms
Johnson has said in the past that he would like to overhaul the stamp duty system, raising the current threshold to £500,000. Anything below would be exempt. Currently, first-time buyers are exempt from paying on properties up to £300,000 which has helped get many on the property ladder. With this proposed change, it would mean that those looking to upsize or downsize would have more freedom to do so.
If these changes go ahead they will drastically affect the changes George Osborne brought into effect in 2014. Johnson has also proposed to cut the percentage of stamp duty paid by those in the top end of the property market. Cutting this from 12 percent to 7 percent will help those looking to move in larger properties be able to explore their options. Both these proposed changes will make a big difference to the London market.
Who will pay the stamp duty?
Johnson has suggested switching to the seller paying the stamp duty rather than the buyer. This will mean that there may be more competition from buyers from homes but the seller will still pay the fees on the property.
What happens next?
The focus will be if Brexit goes ahead on the 31st October deadline. If it goes as planned, a potential end to change and uncertainty will mean the market improves, with those holding off investing finding confidence to make purchases. We will then see if the plans outlined above for stamp duty, will be actioned by the new Prime Minister with the help of the new Housing Secretary, Robert Jenrick.
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