George Osborne announced the Spring Budget 2016, which dealt a double blow for landlords, but was good news for people saving for their first home.
The first blow to landlords is the announcement that the 3% stamp duty increase will also include those who buy more than 15 properties.
Large-scale property purchases were to be exempt from the additional stamp duty tax originally because it was felt it would deter investment in housing projects.
The second blow is regarding capital gains tax, though the tax is down from 28% to 20%, and the basic rate down from 18% to 10%, capital gains on residential property will be subjected to an eight percentage point surcharge, leaving them at the original rate.
Reaction from the private rental sector to the budget was unsurprisingly not favourable.
There was some good news for landlords, however. People who make money from their homes would benefit from a separate £1,000 allowance.
The rent a room scheme allows homeowners to earn £4,250 tax-free from both long and short-term rentals and the allowance increases to £7,500 next month.
Nicholas James are a family run Estate Agents in Southgate, North London. The first Nicholas James office was opened in August 200 by brothers Nicholas Panayiotou and James Panayiotou, bringing together a combined experience of over 25 years in property sales, lettings and management in Southgate.
If you wish to make enquiries regarding your property, pick our brain on a particular issue or simply meet the team then please feel welcome to visit us for a pleasant and informal chat at either of our Estate Agents offices in Southgate or visit our main website HERE!