The housing market has seen many changes in 2017, from the recent abolition of Stamp Duty for first-time buyers purchasing a property up to £300,000, to a shake-up of the way landlords are taxed on their portfolio. Here, we outline what happened in the housing market in 2017 and what it means for you.
Stamp Duty abolished for first-time buyers
One of the biggest changes for the housing market this year was the recent government announcement that they are scrapping Stamp Duty for first-time buyers purchasing a property up to £300,000.
In addition, the rates have been adjusted so that first-time buyers making a property purchase up to £500,000 will be exempt from paying Stamp Duty on the first £300,000 and will pay a 5% tax on the amount between £300,001 and £500,000.
Learn more about Stamp Duty rates in the UK or use our Stamp Duty calculator.
There’s a new way of renting
The build to rent sector has grown in 2017, creating a new type of accommodation for renters.
Build to rent developments are owned by institutions such as pension funds, who then rent the properties out through an agent like Foxtons.
Currently there are around 55,000 build to rent properties in the capital, which provide good quality housing on a long-term basis. The developments offer communal spaces, gyms and a range of different amenities dependent on the site, with the aim to create a community for its residents.
Find out more about what build to rent is.
Prices remain stable
2017 has proved that the London property market is robust, despite the political and economic pressures of Brexit and this year’s general election.
According to the latest HPI figures, prices are up in 29 of the 32 London boroughs from the beginning of the year.
The stabilisation of prices and continued low rates of lending make today’s market a good place for buyers, which is coupled with a rise in stock levels.
Interest rate rise
This year was the first time in the last 10 years that the base rate of interest has increased. Although there were some concerns over what the rise meant for homeowners, the increase in the base rate from 0.25 to 0.5% means a marginal increase in monthly mortgage repayments.
Read our article about what the interest rate rise means for you.
Landlord tax changes
2017 saw the introduction of the landlord tax changes, which are being phased in until 2021.
The main change is that landlords will not be able to claim tax relief on their mortgage payments from 2021, reducing by 25% each tax year until then. This could push landlords into a higher tax bracket, especially those with high levels of lending and a larger portfolio.
Here’s an overview of what the landlord tax changes are and how they may affect you.
More affordable housing
The recent government budget announcements focussed heavily on improving the UK's affordable housing market. The government has committed to building more affordable housing, pledging £44 billion to build new homes and an additional £400 million to improve existing estates.
There will also be a focus on pushing forward approved schemes to get them built as soon as possible to alleviate council waiting lists.
