Overseas investors expected to snap up UK property before stamp duty hike

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The recently announced UK Autumn Budget 2018 detailed many economic changes that will affect residents and non-residents alike, including confirming a minor increase in stamp duty for overseas property buyers.

The proposed 1% surcharge on residential properties in England and Northern Ireland is still subject to a consultation in January that may see it overruled. Nevertheless, real estate services expect to see an influx of property transactions in the next few months as investors seek to secure cheaper prices ahead of the decision.

Chancellor Philip Hammond announced the additional 1% tax for foreign buyers on Monday in the House of Commons. While this proposed increase has proven unpopular with investors and in the property markets, it is lower than many feared. Prime Minister Theresa May previously discussed increasing stamp duty by as much as 3%, with money raised from the levy helping to tackle the homeless situation.

Controversial decision

If the proposed change comes into effect, overseas property buyers will have to pay an extra 1% when buying property in the UK. This is in addition to existing stamp duties that already apply to certain types of property transactions, including a 3% surcharge when buying a second home and up to 15% taxes in the high end of the market.