Looming stamp duty hike sees surge in investor interest in Somerset
A SOMERSET housebuilder has seen a rise in the number of enquiries from one off investors ahead of the Government’s planned stamp duty hike for landlords in April 2016.
Clevedon-based developer Elan Homes, which is building at Kingsbury Gardens in Milborne Port, has received a significant number of additional enquiries from would-be buy-to-let purchasers since the Chancellor announced the additional 3% levy in his autumn statement.
For example, the 3% additional stamp duty rate on a £200,000 property bought as a buy to let or as a second home, will jump from £2,500 to £10,000 in April.
Andrea Nippe, sales director for Elan Homes in the South, said: “We’ve seen an influx of enquiries at our Kingsbury Gardens development in Milborne Port in the last week as buy to let investors try to beat the stamp duty increase due to come into force next year. Until April 2016 they will pay the same rate of tax as other purchasers so it’s no surprise that those who may have been considering making an investment purchase are choosing to do so now, as they will potentially save thousands of pounds.
“For many of people, putting money into bricks and mortar is a savvy choice. While the rental income can go towards paying the mortgage, in a rising market as we are currently experiencing, the increase in the property value over time is generally much higher that any return on savings in the bank.”
Kingsbury Gardens is perfect for investors as the properties require little to no maintenance and they are sought after by tenants who want contemporary interiors where everything is brand new. A typical rental income on one of the three- bedroom semi-detached properties is around £795 to £850 per calendar month.
The development has a selection of three and four-bedroom semi-detached and detached new homes, with high specification fittings, so they appeal to both young professionals and families who may be looking to buy or rent.
Surrounding by countryside and nestled in a village just off the A30, Kingsbury Gardens is just three miles to the historic village of Sherborne. Current prices for a three-bedroom detached home start from £240,995 and from £268,995 four-bedroom home.
Those considering an investment can book an appointment to visit Kingsbury Gardens, open Thursday to Monday, 9.30am to 4.30pm, by calling 07891 312887.