AS I am sure many people will know, the Chancellor is increasing the stamp duty payable by three per cent on April 1 for most Second Homes Purchases, whether this is Buy To Let Property or a Holiday Home!

For a £200,000 purchase this is a whopping extra £6,000 in tax to find to help fund George Osborne’s deficit reduction targets! Total stamp duty tax payable of £7,500!

This has led to a large rise in inquiries from investment landlords hoping to pick up a property before the extra tax changes come into force and therefore if you are thinking of selling come and speak to us, we have buyers waiting.

We are Crediton’s longest-established letting and property management company and are licensed members of the Association of Residential Letting Agents as well as licensed members of the National Association of Estate Agents, so we can offer professional advice about all your property needs.

I believe the aim of these tax changes are two fold, to firstly obviously increase revenue for the Government as the country is still running a massive deficit, and secondly to reduce the demand for property from investment landlords and second home owners to free up stock for first time buyers, a laudable aim regardless of your politics, but is it going to work?

Only time will tell but I, as do many industry experts, think that this will have little effect.

Firstly, with house price inflation currently in excess of six per cent, the stamp duty costs will be more than made up for in the increase in value of the property in the first six months.

The main ongoing problem is simply a lack of supply but also ever increasing burdens on house builders and developers in terms of regulation and contributions towards various costs; which ultimately simply get passed on to buyers in terms of higher prices.

Even with these changes and future proposed changes to tax on mortgage interest relief we strongly believe that demand will outstrip supply for many years to come making investment in property very attractive.

For expert advice on any property related matter, speak to Graham or myself at Devon Sales and Lettings on 01363 773757 or visit us at 115 High Street, Crediton, EX17 3LG or email us at: [email protected] .

Rupert Geering

MNAEA, MARLA, AssocRICS