In the Autumn Statement last year, the Government announced changes to the Stamp Duty Land Tax regime for investors.  This change will come into effect on the 1 April 2016 meaning that there is currently a surge of investors trying to complete before the end of this month.  In January, the Government launched a consultation on the proposed changes, and the final rules will be announced at the budget on the 16 March 2016.  We expect a chaotic month, particularly following on from the more detailed announcement as to the meaning, impact and application of the rules, later this month.

The property market got off to a flying start for the year; research suggests that the number of property sales in January increased by 9.7% as compared to last year. This year on year increase can be attributed, in part at least, to a spike in purchases by investors looking to escape the rise in stamp duty looming next month.

This ‘spike’ is likely to continue until the end of this month and will provide a short term boost for a matter of weeks.  However, it is very unlikely that the market will sustain this level of activity and it is very likely that the  number of sales will diminish, in the short term at least, from April.  It seems as though demand will continue to outstrip supply meaning that the commitment to building new homes will become ever more critical.

The budget takes place on the 16 March 2016 – all we can say is watch this space!