News

After all the speculation and concern, the details of the budget were read out in parliament by Chancellor Rachael Reeves at the end of October, its implications for the market taking immediate effect. One of those changes that drew widespread criticism within the specialist market was the Stamp Duty Land Tax increase; second homes, buy-to-let and company purchases will be subject to a surcharge increase from 3 to 5%.

Landlords were understandably unhappy at the increase because it also came just one month after the contentious Renters Reform Bill was discussed again in the House of Commons. Set against a backdrop of demand for private rental properties, the rise in SDLT was unwelcome news. There is however some positive news for Property Investors and Landlords regarding other types of investment properties.

No change for mixed-use / semi-commercial and commercial properties

The SDLT surcharge increase does not apply to mixed-use and semi-commercial properties. Pre-budget, these types of properties fell outside the additional 3% and they continue to sit outside the 5% additional cost announced in the statement. Many understand that commercial assets don’t incur this charge but not all knew that semi-commercial, inclusive of residential elements were exempt from the additional cost. It’s crucial that brokers, IFAs and introducing partners remain aware we are here to assist with any such properties purchasers including where clients are perhaps considering these asset classes for the first time.

Bank of England cuts base rate to 4.75%

Hot on the heels of the budget statement was this week’s announcement that the Bank of England has cut base rate for the second time this year. If there are any clients of ours who are looking at finance solutions or commercial mortgage deals, they are immediately able to benefit from this reduction where utilising a variable rate option. It’s worth noting that the competitive term rates available typically priced this reduction in, in addition to further expected cuts to come.

The financial markets will closely monitor the Bank of England’s decision, commentary and indeed further reaction to the budget announcements, not to mention implications of say…significant election results overseas.

Speak to a member of the Omega team to understand terms rates and options available to support purchase and refinance of Investment property, trading businesses, development finance or even where you need to complete a bridging loan before the new year.