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

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

view article
AbbieP.
AbbieP. 21 Jul 2016

And try to profit from your decisions, I may add

view article
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...

view article
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...

view article
property guru
property guru 11 Jul 2016

Why should Ajay even have to be looking for it. It should be public knowledge. Why is not just publish each years and to were it is and be AUDITED. Accountability.

view article
property guru
property guru 11 Jul 2016

Surprise suprise

view article
CommercialTrust
CommercialTrust 30 Jun 2016

This is great news for buyers and investors in a period of significant uncertainty. The 10-year buy-to-let fix at 3.99% in particular is excellent, a clear 100 bps ahead of the nearest competition. Though...

view article
Lee
Lee 30 Jun 2016

Let's see what happens to north-east property prices when Nissan announce they're leaving.

view article
DmitriKara
DmitriKara 29 Jun 2016

I just read another article about eviction rising and this was exactly what was on my mind, Housing has become "cat and mouse"...

view article
DmitriKara
DmitriKara 29 Jun 2016

I am really not surprised. I've seen one too many impudent tenants and in my humble opinion renters have one too many privileges and options to abuse heir landlord in so many ways...

view article
DmitriKara
DmitriKara 29 Jun 2016

There is still so much uncertainty and I will surely step back and see what's happening before I could make any decisions on my end.

view article
ChristinaReedUK
ChristinaReedUK 20 Jun 2016

I don't understand why it's always a war between the two sides. Either, way the landlord is probably keeping a detailed inventory and will see the changes you've made. I just don't understand why there...

view article

Related stories

More articles from Landlords