Some argue that the traditional ways that we buy homes in the UK is changing. Some buyers are working very hard and only paying one set of Stamp Duty as they move along the property ladder. Enable’s IFAs in Bishop’s Stortford have seen several clients “leapfrog” some of the more traditional rungs of the housing ladder and some say it is impacting the housing market.
Stamp Duty has fallen over the last year. Figures from HMRC show the tax raised in stamp Duty in 2018/19 was £11.9 billion. This is down from £12.9 billion raised the year before. When the Government reorganised Stamp Duty a few years ago it was keen to emphasise that only the biggest transactions would lead to larger bills. But none the less some homebuyers are deciding they cannot afford to move every few years, as they might have done beforehand.
Some homeowners are looking to purchase homes that don’t just suit them now, but for the foreseeable future as well and this is changing the housing market. Some say it may be playing a part in the slowdown in housing transactions. According to data from HMRC, there were 89,810 residential property purchases in May, down 6.4% from April and a massive 11.3% lower than May 2018.
If buyers are skipping stages in the traditional property ladder journey, perhaps sales of certain types of homes will slow down and a shift towards a more long-term approach to a property will also impact on mortgage decisions. If you’re buying a property you think is going to be your “forever home”, there isn’t much point in going for a two-year fixed rate that you’re going to have to re-mortgage a couple of years down the line. Enable’s IFAs can help you look for the right mortgage for your property decisions.