The Government’s recent Summer Statement is great news for home buyers, especially first time buyers ready to make that first move onto the housing ladder. Its a warm welcome for all and we have seen a serge of interest from the Chancellors announcement last week. However, this significant statement also benefits landlords and property investors too. Their are sizeable savings to be made if you’re adding to your portfolio, plus grants for energy efficiency improvements.
Stamp Duty savings how will it benefit you ?
Although any second property purchased will still require payment for the additional 3% Stamp Duty as before, you will not need to pay the standard charge that accompanies it (up to £500k) so much will depends on the purchase price of the property...
Previous SDLT cost
Current SDLT cost
As you can see, there are some great savings to be made. Investors will be able to target saved funds towards refurbishment costs, or to achieve a different mortgage banding which all helps to increase the ongoing yield
Green Homes Grant
The introduction of a grant to help landlords make their properties more energy efficient will be well-received.
Following the most recent change to EPC legislation that stated all rental properties needed an EPC rating of 'E' or better, it will give landlords an opportunity to ensure their properties are graded far higher and so further protect themselves against changes which could be seen in future legislation. The grant offers to pay £2 for every £1 spent by the landlord up to a maximum contribution of £5,000.
The aim of the Green Home Grant is to upgrade over 600,000 homes across the UK, saving households hundreds of pounds each year on their energy bills. More details will be released in coming weeks and the scheme will be open for applications in September.
What Kerr and Co say…
Commenting on the Summer Statement and how it will impact landlords and property investors, Andrew Teague Lettings Manager at Kerr and Co says: “ We welcome the news its been a tough time for our landlords these savings will help many improve their current properties. This is unique stamp duty holiday is an opportunity for investors to add to their portfolio or invest in it to provide a more economical home for their tenants, whilst saving money.
Robert Barr Sales Director at Kerr and Co says: "Given the tough trading conditions of recent years, it is evident that bricks and mortar has and continues to be a resilient asset which has performed exceptionally well against other investments. After several tough years I am delighted that there has been a marked resurgence in demand across the property spectrum for both sales and rental in Shepherds Bush and Hammersmith with. Many are high calibre buyers looking for a settled home for years to come." .
Chris Kerr Owner and Director of Kerr and Co says: "The next 9 months is an amazing opportunity for many who have been waiting for a chance to make that purchase - as a Independent High Street agent for over 30 years in West London, our experience and a sense of community has enabled many of our clients make owning their own home a reality - Covid -19 hasn't changed that. "
Kerr and Co are delighted to inform all, clients, buyers and tenants alike that we are open as usual.
We are able to continue in the same manner we have been since May 2020 and are here to assist those looking to sell, buyer or rent a property in the Hammersmith and Shepherd’s Bush areas.
For the full Government guidance on the property market and moving home during the lockdown in England please see: here