With two months of the year already behind us, we find ourselves entering March with activity across both sales and lettings at healthy levels and general confidence in the marketplace remaining strong.
The next few weeks will undoubtedly see many investment purchases complete in order to beat the April 1st deadline to avoid a 3% hike in stamp duty and this will be followed by an increase in property available to let as these successful investment purchasers look to start seeing a return on their acquisition.
It remains to be seen if this change in stamp duty affects future investment although, given that buy to let should be seen as a long term investment for both rental yield and capital growth, we do not expect any adjustments to be dramatic.
The Government has also announced the date for the UK referendum on our membership of the EU. This will take place on June 23rd. The outcome will clearly have huge implications for everyone although the magnitude of the detail is difficult for any individual to fully grasp. It is unlikely that an “in” or “out” decision will have any immediate impact on the UK residential property market although the implications in the commercial world could be far greater, hinging as they may on our ability to trade.
It is impossible to therefore take a view without making all sorts of “finger in the wind” assumptions.
What we do know is that markets hate uncertainty and therefore the lead up to the vote may see some volatility and a vote to leave would almost certainly create even more.
Current interest rates remain low and there are plenty of excellent fixed rate mortgage schemes available – with plenty of popular two year fixed rate mortgages at sub 4% APR – we recommend taking professional advice to find the scheme that is most suitable for your circumstances.
Help 2 Buy has become part of the UK’s house-buying armoury with schemes for new builds and second hand homes and the launch of the Help 2 Buy ISA. The scheme for second-hand homes is however scheduled to end in December 2016 and so anyone thinking of taking advantage is advised to take this into consideration in order not to miss out. Our experienced staff will be pleased to provide advice.
As we move towards Spring and the days become longer, we expect to see greater numbers of properties come to the market and activity levels increase further. If you are thinking of moving, now is a great time to be getting gardens looking their best and for any maintenance and redecoration jobs to be completed.
