First Time buyers
This will enable first time buyers who wish to buy up to the value of £500 to save on tax.
Trading is when you buy a property with the sole intention of selling it on for a profit. The tax holiday will have a very significant boost to trading since the tax element made many deals in the South of England just not viable. We expect to see a significant increase in trading activity in The South.
Buy Refurbish and Refinance (BRR)
Buy, Refurbish and Refinance (BRR) is one of the most popular strategy in use now for portfolio building. This is where an investor buys a property with CASH, often a rundown property, Refurbish the property to add significant value and then mortgages property to take out all or most of their initial CASH investment.
Buy Refurbish and Sell ( BRS)
BRS is when investors buy a rundown property, Refurbishes it with the intention of selling on. Having to pay Tax twice within a short period of time was a deal breaker. The tax holiday will be a very welcome boost to this strategy.
Office to Residential conversion
Office to Residential Conversion is a strategy whereby developers buy qualifying office blocks and convert them into flats. These projects are often much quicker to deliver than new build projects. The tax holiday will make units under £500K more affordable and will fuel the sector.
New Build Developments
The New Build sector, developers who are actually build from ground up should benefit significantly. The tax holiday will drive up demand for units completing now. The limited tax holiday will actually motivate most developers to fast track their projects and ensure completion within the Tax holiday period.
Moms and Pops down sizing
The tax holiday will help drive up the demand for those in big houses who might want to downsize and on the other hand, the fact that they can buy their smaller home Tax free helps as well.
We will see a surge in activity in the market right now.