Property buyers and buy-to-let landlords keen to purchase in Wimbledon have been dealt a stamp duty shock.
New Chancellor Philip Hammond made no mention of stamp duty reform in his Autumn Statement, despite calls for him to either lower or abolish the punitive stamp duty measures introduced by previous Chancellor, George Osbourne.
The extra 3% stamp duty surcharge on second homes and a higher stamp duty rates on properties priced at £1.5 million or more, have been blamed for a slowdown in the high end market, and that includes properties in Wimbledon and Wimbledon Village. With less activity at the top, the middle market is suffering due to lack of supply, as there is not enough incentive to move house.
Another measure which has shocked the lettings market, is a plan to ban tenants from paying letting agents’ fees ‘as soon as possible’. These fees will instead be paid by landlords, unless, in the long-term, rents are increased to accommodate these fees.
The Chancellor focused on the need to increase productivity through investing in infrastructure, transport links and housing. Genuinely affordable housing is in short supply, especially in London where demand is too high for supply to keep up.
To address the dearth of affordable homes, a number of steps have been taken: £1.4 billion will be spent to deliver 40,000 affordable homes, £3.15 billion will be given to London to build 90,000 new houses, while a £2.3 billion housing infrastructure fund will provide 100,000 homes in areas where new housing is needed.
The Wimbledon market will continue to thrive, despite no change to the stamp duty increases which have slowed down London’s prime market.
For more information on the Autumn Statement 2015, click on the link below: