Landslide or Avalanche? Let Compass Help Your Firm Avoid the Fear of Keir
With the recent seismic shift in the UK’s political landscape, the airwaves and digital sphere are abuzz with speculation and analysis about what the future holds. While discussions about the broader implications of this change will no doubt continue for a long time, there is an immediate question on the minds of those in the property market: What does this mean for the UK property sector and its professionals?
First Time Buyers Relief
The new governing body has signaled intentions to adjust the FTB Stamp Duty relief, a move that has potential buyers and industry professionals alike paying close attention. The change, set for April 2025, will revert the relief threshold to its previous £300,000 mark. This adjustment is likely to encourage a surge of activity as First Time Buyers rush to secure their purchases before the change takes effect, reminiscent of the rush seen at the conclusion of the covid-era SDLT holiday.
Overseas Buyers
An additional area of focus under the new administration is the overseas buyers’ market. Plans have been revealed for an additional 1% surcharge on top of the existing 2% rate. This move aims to address the ongoing influx of foreign investments in UK properties. Despite skepticism about its long-term effectiveness, this policy is expected to trigger a flurry of activity as overseas investors seek to finalize their purchases ahead of the impending surcharge implementation.
Mortgages
Perhaps the most significant impact on the property market will come from changes in mortgage rates. With inflation rates and the BoE Base rate showing persistent levels, the incoming government’s policies could introduce a new wave of uncertainty and opportunity. Mortgage lenders have demonstrated responsiveness to these economic indicators, adjusting rates and thereby inciting periodic activity booms within the market. The anticipation of continued or increased volatility calls for industry professionals to remain vigilant and adaptable.
Things Can Only Get…Busier?
All indicators suggest an uptick in business for conveyancers, underscoring the importance of efficient, reliable services to handle the anticipated increase in demand. Compass remains at the forefront of this sector, offering the leading Compass Concierge software to streamline the SDLT calculation process. This tool provides a foolproof solution for accurate Stamp Duty calculations, ensuring compliance and confidence for both professionals and their clients.
In an effort to further enhance support for legal professionals and clients alike, Compass is proud to introduce Compass Gateway. This new B2C service offers a preliminary educational platform on SDLT, LTT, and LBTT, preparing clients for the comprehensive Compass Journey. Gateway is designed to enhance client awareness and understanding of property tax responsibilities, a critical component in informed decision-making.
Offered at no additional cost to firms, Compass Gateway represents an invaluable resource in the increasingly complex property market. This initiative not only equips clients with essential knowledge but also alleviates the burden on firms to educate them on these issues, streamlining the process during what promises to be an exceptionally busy period.
As the property industry braces for the changes and challenges ahead, tools and services that offer clarity, accuracy, and efficiency will be indispensable. Compass is committed to providing these solutions, ensuring that both legal professionals and their clients navigate the future landscape with confidence and success.
