The minimum value of a property to be eligible for stamp duty land tax should be raised, according to Ray Boulger, senior mortgage technical manager at John Charcol.
The minimum value of a property to be eligible for stamp duty land tax (SDLT) should be raised, according to Ray Boulger, senior mortgage technical manager at John Charcol.
Boulger outlined that the majority of SDLT is paid by the higher priced properties and therefore, the minimum price that a property must be in order to be eligible for SDLT should be raised.
Boulger pointed to the current stamp duty holiday, which notes that properties must be over £500,000 in order to qualify for SDLT.
Additionally, Boulger sees this as a positive way to stimulate the housing market in 2021.
Furthermore, Prime Minister Boris Johnson announced a host of new rules on Saturday 31 October, outlining a second lockdown.
Boulger believes that the implications for the mortgage and housing markets are not good.
Boulger noted that the market would not be disrupted in terms of activity, however he believes that the new lockdown restrictions will have an affect on people who were planning to buy.
Expanding on this, Boulger explained, as a result of the restrictions, people may not want buyers looking around their property and those buying may not want to look around properties.
Moreover, Boulger is calling on Chancellor Rishi Sunak to extend the stamp duty holiday beyond the March deadline, which he believes will allow for the economy to be seen in a more accurate form.
Looking to the conclusion of 2020, Boulger believes that property prices will be an estimated 7% to 8% higher than they were at the start of the year.
In addition, Boulger outlined that if the chancellor does extend the stamp duty holiday then the pressure on the new-build market will subside.
Boulger explained that as the Help to Buy scheme is set to conclude alongside the stamp duty holiday at the end of the March, this has resulted in the new build market seeing an upsurge in activity.
Interest rates will remain low and there will be a new era of low interest rates, outlined Boulger.
He believes that the Bank of England will keep interest rates at an all time low for the foreseeable future.
Boulger added that he expects to see the return of 95% LTV mortgage products by the start of next year.
