Despite last year’s stamp duty increase, there has been a significant increase in the volume of mortgage enquiries within the UK property market, reveals deVere Mortgages.
Part of deVere Group, one of the world’s largest independent financial services organisations, deVere Mortgages, which specialises in UK mortgages for expats and overseas buyers, reports the uptick in enquiries, in the wake of George Osborne’s 3 per cent top-up stamp duty announced in his 2015 Autumn Statement for buy-to-let homes, targeting landlords.
Darren Mead, Head of Mortgages, comments: “Whilst many industry insiders report falling investment volumes in the UK property market, deVere Mortgages has experienced an average month-on-month increase in home loan enquiries of an average of 12 per cent since the former Chancellor’s 2015 Autumn Statement.
“This trend underscores the resilience in the UK property market. Furthermore, house prices are proving buoyant, with the average price for a three-bed semi-detached up by 2.6 per cent annually, to £233,000 in England and Wales.”
Mr Mead goes on to say: “Property values have even surpassed those from just before 1st April 2016, when people were rushing to beat the stamp duty increase and the property market was showing levels of hyperactivity.”
During his 2015 Autumn Statement, former Chancellor, George Osborne announced an additional 3 per cent stamp duty on buy-to-let properties and second homes, in the aim of generating £1bn by 2021.
As such, from 1st April 2016, those who purchased a property in the UK for £40,000 or more, and who already own a property, or a share in a property anywhere in the world, have to pay an extra 3 per cent stamp duty based on the purchase price.
Mr Mead concludes: “We fully expect the level of mortgage enquiries to continue to rise throughout this year as borrowers’ appetite for buying remains robust. Naturally, since the stamp duty increase, landlords in particular face greater complexities, fuelling the need to seek professional and independent advice.”
Working with over 200 UK-based and global lenders, deVere Mortgages assists UK residents and overseas clients in property purchasing and re-financing. The brand also specialises in buy-to-let opportunities, equity release, re-mortgaging overseas properties and tax optimisation from rental income.