The VAT rise coming into force in January 2010, coupled with the return of stamp duty on properties between £125,000 and £175,000, could hit home buyers hard in the pocket unless they move quickly.
Home buyers are being urged to move quickly to avoid the extra VAT on their purchase, when the rate returns to 17.5 per cent, up from the current 15 per cent which was brought in to ease the effects of the recession.
Ken Reason of MHL Estate Agents in Mesnes Road, Wigan, said: “The last six weeks of 2009 are going to a be a busy time for estate agents and home buyers as people rush to beat the extra hike in VAT before it’s too late.
“With the average house purchase taking 4-6 weeks, now is the time to make the move.”
Tom Bridge, Managing Partner of Residential Conveyancing at Stephensons Solicitors LLP, added: “Completing a house purchase now could potentially save hundreds of pounds in VAT and stamp duty. I would urge those currently with their home on the market to consider making their property more likely to sell by reducing the asking price if they want to prompt interest.
“I expect that the rush to beat the deadline will create a short term boom in the housing market.”
The latest figures released from the Council of Mortgage Lenders (CML) also suggest that while lending criteria remains extremely strict there have been further signs that the housing market is making the first signs of a very slow recovery, with 50,600 loan applications made for house purchases in September - an increase of 43% from September 2008.
Stephensons has been helping local people move home for thirty years and provides the complete conveyancing service. To find out more contact the team on 01942 774488 or get a personalised by clicking this link conveyancing quote.
ENDS
Notes to editors
- Stephensons undertakes all areas of residential conveyancing including sales, purchases and re-mortgages. The firm’s experienced residential property team acts for local private clients and those referred by local estate agents.
- Stephensons is a North West regional law firm with a national reputation and reach. The latest edition of Legal 500 ranks Stephensons as a top 60 UK firm and recommends the property team.
- For more information visit www.stephensons.co.uk.
Media information Lianne Tracey
Stephensons Solicitors LLP
T: 01616 966 229