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.”


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Spencer Fortag
Spencer Fortag 25 Aug 2016

The funny thing is, I mentioned the brick issue in my blog back in April: http://medwayproperty.blogspot.co.uk/2016/04/the-medway-property-market-and-lack-of.html

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SecomTech
SecomTech 19 Aug 2016

Firstly, I either lodge with DPS or do not take a deposit...secondly, If a tenant has not received a confirmation their deposit is secured with either a scheme or in an insured account with an agent/landlord,...

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jasonevans
jasonevans 19 Aug 2016

Belvoir has over 15 years of experience in property lettings, buying and renting and is one of the best agencies I know about. I have heard that they revived an award for the hard work. Really amazing...

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jasonevans
jasonevans 19 Aug 2016

Usually these areas are least affected when it comes to unexpected economical collapse.

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TheWaspNestRemover
TheWaspNestRemover 11 Aug 2016

You agree to pay for the treatment needed to get rid of fleas, ants, mice, wasps nests and other pests unless you can prove that these are a result of us not meeting our repairing responsibilities or these...

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madisonwelch80
madisonwelch80 02 Aug 2016

16% is quite a raise. Let's hope this tendency won't continue for long.

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madisonwelch80
madisonwelch80 02 Aug 2016

?66,963 is a serious price drop However buying a property it a serious investment only small percentage of the UK population could afford.

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madisonwelch80
madisonwelch80 02 Aug 2016

Wow, it kind of surprised me. I mean counting on mom and dad's bank even after retirement is too much. That's the moment in life when one should have ensured themselves. I am shocked.

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AbbieP.
AbbieP. 22 Jul 2016

"While house prices in the most expensive eleven boroughs have declined values in the cheapest eleven boroughs continue to rise" - not a nice way to even out the price range. London is overrated as it

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AbbieP.
AbbieP. 21 Jul 2016

And try to profit from your decisions, I may add

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CommercialTrust
CommercialTrust 19 Jul 2016

Retirement investment has always been one of the biggest draws of buy to let. And the buy-to-let demographic is, on balance, older. (Over a third of our applicants are over 50 at the time of application.) It...

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Forrest Wheatey
Forrest Wheatey 11 Jul 2016

I find the time perfect for ever home-owner wannabe. Prices should slowly, but steadily drop, at least for the inner buyer. Making it harder for outsiders to buy properties (the whole Brexit thing means...

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