Will student property demand get a boost from new stamp duty rules?

Will student property demand get a boost from new stamp duty rules?

According to recent findings from the Mistoria Group, North West investor demand in student property will get a boost from the new changes in stamp duty as the savings on a typical HMO will be £1,050.

Under the old rules, buyers would have to pay a single rate of tax on the entire property price.  So for example, if an investor bought a property for £185,000, they would have to pay 1% tax on the full amount – a total of £1,850.

However, the new rules suggest that investors will only have to pay the rate of tax on the part of the property price, within each band like income tax. For example on a property valued at £185,000 investors will pay nothing for the first £125k and only 2% on the remaining £60k.  

This works out at a saving of £650.

Mish Liyanage, Managing Director of The Mistoria Group explains: “The new rules kick in on 4 December 2014, but investors who have already exchanged on a property, will have a choice about whether to use the new or old rules.  However, if investors completed on their purchase on or before the 3 December, but have not filed their stamp duty return, they will still have to pay their stamp duty under the old rules.

The change to stamp duty is great news for investors considering student property in the North West, as there are big savings for HMOs to the value of £250,000.  In the North West, the average four bed HMO will cost £140,000, so the savings could be over £1,000.”


Join our mailing list:

Leave a comment



Latest Comments

Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

view article
Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

view article
Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

view article
Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

view article
richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

view article
Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

view article
maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

view article
maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

view article
zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

view article
Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

view article
Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

view article
RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

view article

Related stories

More articles from Landlords