The head of communications at the Home Builders Federation (HBF) has recently admitted that at the moment the trend for building new homes has moved towards larger properties. Commentating on the current state of the house build market Steve Turner went on to say that “Builders will obviously build what they can sell. People that already have a home and are moving home tend to be buying bigger houses, so that is the market that developers are targeting because it is the only market that people are currently buying in.”
Mr Turner’s observations seem to reflect the current state of the housing market in the UK at present. A combination of financial uncertainty and falling house prices has resulted in a flat market for those looking to move or trade up whilst prices have not fallen far enough for those looking to step onto the housing ladder for the first time.
Even for the main movers towards the top of the housing tree, cost control is vital to ensure an affordable move. One such cost is that of Stamp Duty Land Tax (SDLT). This is payable upon the transfer of property, whether freehold or leasehold, private or commercial. With the top rate of SDLT at 5% for properties costing in excess of £1million, the tax can make a substantial difference to the feasibility of a property transaction.
With complex property transactions, particularly those linked to business transactions, it generally pays to consult a SDLT expert. However, many private property transactions, especially those in excess of £500,000, can also benefit from SDLT mitigation strategies, thus helping to ensure the cost effectiveness of a transaction.
As Stamp Duty Land Tax specialists Newshams are able to give advice on SDLT, how it may affect any private or business property transaction and how to put in place an effective mitigation strategy.
Contact us now on 020 7470 8820 and ask to speak to a tax adviser about how we can reduce the tax costs on your property transaction or e-mail us at firstname.lastname@example.org and we’ll get straight back to you.
23rd June 2011