Mondial Property & Mortgage Updates
Falling Pound: What the 37-year low means for UK Property.
The falling Pound is likely to provide added incentive to overseas buys of UK property. This is because those buying from abroad will find UK homes considerable cheaper than they are during times of a strong Pound. Added to this the fact that the UK housing market has continued to perform extremely strongly throughout the recent market troubles, has created further confidence in the sector.
The last time we saw such a fall in the Pound was after Brexit, where depending on your base currency, people were enjoying a discounted Pound of between 15% and 21%.
There is a massive shortage of properties in the UK and there are many Investment Hot Spots that offer massive upside potential from both a yield and capital growth point of view. With the UK Government's recent decision to cut stamp duty, you can benefit on 2 fronts: a cheaper Pound and lower Stamp Duty.
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A cut in Stamp Duty
The government believes that cutting Stamp Duty will encourage economic growth by allowing more people to move and enabling first-time buyers to get on the property ladder.
So, the chancellor announced that, with immediate effect, no Stamp Duty will apply to the first ￡250,000 of a property purchase. This will save a second-time buyer ￡2,500 when they buy a house valued at more than ￡250,000. The chancellor also increased the threshold at which first-time buyers will start paying Stamp Duty to ￡425,000 and increased the value on which they can claim relief from ￡500,000 to ￡625,000. He says: “The steps we’ve taken today mean 200,000 more people will be taken out of?paying Stamp Duty altogether. This is a permanent cut to Stamp Duty, effective from with immediate?effect.” For Non –?Resident overseas investors, the lowest rate of 5% (including the 2% surcharge) now applies for the first ￡250,000, previously it was up to ￡125,000.
For more details, or to contact Mondial's Head of International Properties Desk please call +44 7557 223961 or send an email to [email protected]