Tel: 0207 237 0374
Autumn Statement 2015
Residential property (cont)
b). To continue to participate in lobbying for changes to the regulation of funds for retail investors to allow an alternative to buy-to-let. This is crucial with the changes to the rules on annuities. We have commented on this previously in an article that can be found here
4). Extend the Help to Buy: Equity Loan scheme to 2021 and create a London Help to Buy scheme, offering a 40% equity loan in recognition of the higher housing costs in the capital. The scheme will offer buyers with a 5% deposit a loan of up to 40% of the value of a new build home, interest-free for 5 years. This can be used in conjunction with the new Help to Buy: ISA launching on 1 December. First time buyers that save in a Help to Buy: ISA will receive a 25% government bonus on top of their own savings, up to a maximum government bonus of £3000, which can be put towards the purchase of their first home.
5). Higher rates of SDLT will be charged on purchases of additional residential properties (above £40,000), such as buy to let properties and second homes, from 1 April 2016.
The higher rates will be 3 percentage points above the current SDLT rates. The higher rates will not apply to purchases of caravans, mobile homes or houseboats, or to corporates or funds making significant investments in residential property given the role of this investment in supporting the government's housing agenda.
The government will consult on the policy detail, including on whether an exemption for corporates and funds owning more than 15 residential properties is appropriate.
There are two key areas of this in which we will be taking an interest and will update on developments
a). The consultation and detailed provisions for the additional SDLT charge to see who qualifies for the exemption in practice;