16th September 2015

Property Update - Budget 2015

I was watching the Budget with interest and was disappointed to see George Osborne limit the mortgage relief on buy to let mortgages.  It is wrong to say that buy to let investors cause issues for first time buyers and this avoids dealing with the hub of the problem that first time buyers find it difficult to raise a deposit.  I have been campaigning very hard for the creation of a first time buyer fund – effectively a guarantee by the Government to increase the availability of 95% mortgages with the purchaser providing a 5% deposit, the bank lending 95% but the Government guaranteeing 5% limiting the bank’s risk to 90%.  This could be funded by means of a change to the Capital Gains Tax Rules meaning that if someone sold their sole or main residence within a 5 year period of purchase then a certain percentage of the gain, tapered over a 5 year period, would be paid in Capital Gains Tax.  I think that the Chancellor’s attack on buy to let investors is misguided, could have serious consequences for the property market as a whole, will limit the amount of properties available for people to live in (remember there is still a huge shortage) and will in fact raise very little money.

The Chancellor has missed a golden opportunity to put the UK housing market on a more solid footing.  I will continue to keep you updated.

Lindsay Darroch
Partner – Head of Property 

 

 

The opinions expressed in this site are of the author(s) only and do not necessarily represent the opinions of Blackadders LLP.

Blackadders takes all reasonable steps to ensure that the content of this site is accurate and up to date. The site is not, however, intended as a substitute for seeking legal or other professional advice but rather as an informative guide to the services provided by Blackadders and topical legal developments. Site visitors should always seek advice tailored to their specific situation. Consequently, Blackadders accepts no responsibility for any loss or damage suffered by anyone acting or failing to act on the basis of information contained on this site. Downloading of material contained on this site is at the user’s own risk and all necessary virus checks must first be carried out by the user. Blackadders is not responsible for the material found on any web sites linked to this one and links to this site may only be made with Blackadders prior consent.

Copyright

Blackadders owns the copyright in this blog and all material contained on it. The material on this site may be downloaded for personal use only and must not be altered. Otherwise, Blackadders’ written consent is required before any material on this site is reproduced, copied or transmitted in any way.

Privacy Statement

Information passed to us via this site is kept confidential and will not be disclosed to third parties except if authorised by you or required by law.

© Blackadders LLP 2011

Members of the Law Society of Scotland. Authorised to conduct Investment Business under the Financial Services & Markets Act 2000 by the Financial Services Authority.

Blackadders Solicitors is a trading name of Blackadders LLP, a limited liability partnership, registered in Scotland No SO301600 whose registered office is 30 & 34 Reform Street, Dundee, DD1 1RJ. Reference to a ‘partner’ is to a member of Blackadders LLP.

Back to News & Legal updates