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07Mar

The past week has seen several changes to the Stamp Duty Land Tax (SDLT) in England and there will be upcoming changes to Land Transaction Tax (LTT) in Wales.

 

These will affect home-sellers in Mid Wales differently to those in Shropshire and throughout England.

 

But what does it all mean?

 

The team at Morris, Marshall and Poole with Norman Lloyd are here to help, along with colleagues at the Guild of Property Professionals.

 

So, what’s happened?

 

Wales – Land Transaction Tax (Mid Wales - Powys, Ceredigion, Gwynedd)

 

Up until 30 June 2021, LTT is payable when you purchase or lease a property above the threshold of £250,000. Therefore, currently, no tax is payable on the first £250,000 of a property. LTT is 5% on properties up to £400,000, 7.5% up to £750,000, 10% up to £1,500,000 with any amount thereafter taxed at 12%. 

 

As of 1 July 2021, the LTT paid on a property will revert back to the residential tax rates prior to the temporary changes implemented in July 2020.

 

When you buy a residential property (freehold or leasehold) you will be required to pay 3.5% LTT on properties between the value of £180,001 and £250,000, 5% on properties between £250,001 and £400,000, 7.5% on properties between £400,001 and £750,000, 10% on those between £750,001 and £1,500,000, with any amount thereafter taxed at 12%. However, if you purchase a property for up to and including £180,000, no LTT is to be paid.

 

The property market in Mid Wales has seen significant growth over the past year. This has been down to the LTT holiday and also people looking for new homes, larger in many cases. This is down to the need for more work-life space due to homeworking or to have larger gardens or access to recreational and countryside areas.

 

 

Stamp Duty extension – (Shropshire and England)

 

The Stamp Duty holiday in England will be extended by three months.

 

In the 2021 budget, Chancellor Rishi Sunak confirmed that buyers hoping to make the most of the savings of the higher £500,000 nil-rate band will now have until the end of June to complete sales in England and Northern Ireland. From the end of June until the end of September 2021, the nil-rate band will reduce from £500,000 to £250,000.

 

This comes as a huge relief to homebuyers who were hoping to take advantage of the holiday, yet with the initial deadline looming, were not so optimistic about the transaction completing in time. 

 

The holiday was intended as a stimulus for the property market, and many buyers were encouraged to enter the market as a result. Many homeowners escalated their plans to move in order to make the deadline and benefit from the tax relief.

 

 

SDLT explained

The initial threshold is where SDLT starts to apply. If you purchase a property for under £500,000 before the June deadline, there is no SDLT to pay. On purchases over the £500,000 threshold, buyers will pay a 5% SDLT on the portion from £500,001 to £925,000, 10% on the portion from £925,001 to £1.5 million, and 12% on any portion over £1.5 million.  

 

On property purchases from 1 July to 30 September 2021, the SDLT threshold on residential properties will be £250,000. From 1 October, and the SDLT threshold will be £125,000 for residential properties. 

First-time buyers 

From 1 July 2021, if you, or anyone else you’re buying with, are first-time buyers, or if the purchase price is £500,000 or less, you will get a relief that means you’ll pay less or no tax. You’ll also be eligible for this discount if you bought your first home before 8 July 2020. 

 

28Feb

Despite the coronavirus pandemic the property market in Mid Wales and Shropshire has boomed over the past 12 months, a new regional market report reveals.

 

Demand for good quality homes or property for renovation or conversion is at a four-year high, providing house-sellers with a good opportunity, according to The Property Market Report, produced by the Guild of Property Professionals.

 

Open the report here

 

House prices throughout the region have risen between 3% and over 7.5% and demand for larger residential properties with plenty of outdoor space is top of the agenda for many house buyers.

 

Properties offering a work-life balance

 

According to Andrew Turner, a Partner at estate agents Morris, Marshall and Poole with Norman Lloyd, this, in principle, is down to more people working from home and wanting to space to separate work and family life.

 

The latest regional market report said “The desire to move remains on the agenda for many as the housing market proved one of the bright sparks of the economy during 2020.”

 

House price growth

 

Powys – 4.5% to 5.9%

Shropshire – 7.5% and more

Ceredigion – 6.0% to 7.4%

Gwynedd – 3.0% to 4.4%

Herefordshire – 7.5% and more

 

New mortgages opportunities expected for lower deposits

 

News that 95 per cent mortgages could return in April will provide more opportunities for first-time buyers and those looking to move but don’t have the necessary deposit or equity in their current home.

 

The market report states: “2020, a year in which the housing market defied expectations. At 7.6%, annual price growth across the UK is at its strongest since the summer of 2016.

 

“Over 129,000 homes are believed to have changed hands in December, 32% more than in December 2019 with sales for the year projected to be just 11% lower than in 2019 (HMRC).

 

“The mortgage market has recovered. Approvals in 2020 were up 3.7% on the previous year (Bank of England) and with an estimated 9–10% more sales agreed in 2020 than in 2019, the start of 2021 has been positive.”

 

Key points in the latest Mid Wales and Shropshire property market report are:

 

House prices up 7.6% on average

Property sales up 31.5%

Mortgage approvals up 3.7%

Gross mortgage lending up 6.8%

 

“There is hope that a semblance of normality will return during 2021 as the vaccination programme continues apace and lockdown restrictions are gradually lifted. The housing market remains active and with lifestyle change the reason for a move for many, this should ensure continued activity throughout the year,” said Iain McKenzie, CEO of the Guild.

25Feb

A 160-acre farm complete with a four-bedroom farmhouse has attracted interest since going on the market.

Penygraig at Trefeglwys, near Llanidloes, Powys, has been placed on the market at £550,000 through Morris, Marshall and Poole with Norman Lloyd.

The well-known farm sits on the edge of the Trannon Valley and will be sold as either a single farm or in up to eight lots. Tenders have to be submitted by midday on Thursday, 18 March 2021.

Tony Evans, a Partner at MMP/NL who is handling the sale, said: “We’ve received a lot of interest in the property due to its size and location. The land offers agricultural, environmental and diversification uses, and we believe there will be significant interest in the main farm as well as the additional lots of land.”

Lot 1 includes 24.29 acres of land and the main stone-built farmhouse which has been refurbished over time and includes four bedrooms. There is planning permission for an extension into an adjacent timber oak framed farm building for additional accommodation.

It also includes a range of farm buildings, including a traditional lap boarded barn, a timber and cast-iron barn, a three-bay barn and a modern scotch barn extension.

Additional buildings include a four-bay timber pole cattle loose house and a further six-bay timber pole loose cattle house.

Other farm buildings are also nearby.

Other lots are available with a range of land between 3.22 and 28.42 acres.

Full details of the farm sale can be found at www.morrismarshall.co.uk or by telephoning the Rural Department on 01938 552371.

 

14Feb

House buyers and sellers throughout Mid Wales and Shropshire have realised the strengths of their local estate agents throughout the Covid-19 pandemic.

House sales have jumped in Mid Wales and Shropshire over the past six months with the reduction in Stamp Duty and Land Transaction Tax costs.

And while home buyers and sellers have had to adapt to new ways of viewing or valuing properties, high street estate agents have been praised for maintaining their quality of service and professionalism during the coronavirus pandemic.

People want to deal with a person when selling their home

“What has come out of the pandemic is that homebuyers and sellers want to be able to deal with a person at an estate agent and not just an online portal,” said Andrew Turner, a Partner at Morris, Marshall and Poole with Norman Lloyd.

“The changing circumstances and regulations created some confusion in the market, but those buying or selling through us have said the personal service offered has helped ensure the process is as smooth as possible.

“The ability to market properties nationally through our online networks, as well as regionally and locally through our offices and team, combines the best of both worlds.”

One example was the purchaser of a property through our Welshpool office.

“I was a purchaser of a property in September 2020 and the vendor was your client. I have had a lot of positive contact with Bryan Jarman. Suffice to say that my 'old school' perception of customer service was not only met but I also received after care.

“…I would thoroughly recommend MMP.  Between the both of us we were able to drive the completion seven days before Christmas. I'm impressed that during this global pandemic my emails/phone calls were managed with excellence in relation to time frame set by Bryan.”

Local service with national reach

“We have seen people who thought a flat fee online sale agent would be an easy way to sell their home coming to us months later to take over the sale arrangements.

“For one, most estate agents such as us offer a no sale, no fee approach. Our clients deal with a person who lives locally and who undertakes the appraisal, photography and promotion of the property. They know everything is in hand and being taken care of.

“With online only estate agents, a lot of the legwork, photos and viewing arrangements have to be undertaken by the vendor. And they’re paying for that upfront.”

Mr Turner said there was strong demand for residential property throughout Powys, Ceredigion, Shropshire and Gwynedd.

“We’re inundated with enquiries for good quality property. In many cases people want additional space, possibly because they’re working from home. Outdoor areas, the ability to access walks and recreational areas and a sense of community are other major factors,” he said.

The buoyant property market continues

“There is no doubt the Stamp Duty and Land Transaction Tax holiday has helped, but the market remains strong and buoyant and anyone considering selling their property should contact us for a free appraisal.”

MMP/NL can undertake a free appraisal of a property and market it to potential buyers throughout the UK through its online marketing tools and being a member of the Guild of Property Professionals.

MMP/NL has offices in eight towns, including Newtown, Oswestry, Aberystwyth, Welshpool, Llanidloes, Rhayader, Tywyn, Machynlleth and a showroom at Aberdyfi. It also has a specialist Rural Team based at Welshpool Livestock Sales and an associate office in London.

For more information, contact one of its local offices by visiting www.morrismarshall.co.uk

 

14Feb

With demand for properties with large amounts of living space, gardens and access to the countryside on the rise, homes like Cefn Broniarth in Mid Wales are typical of those being snapped up.

 

The four-bedroom property, just two miles from the village of Guilsfield, near Welshpool, Powys not only has large living space, it comes with gardens and a paddock amounting to 4.3 acres.

 

“With more people working from home there has been a rise in demand for properties with large amounts of family living space, as well outdoor areas and gardens,” said Rob Hudson, a Partner at Morris, Marshall and Poole with Norman Lloyd.

 

“Areas such as those surrounding Guilsfield have always been popular due to the close proximity to the Shropshire border and access to Oswestry and Shrewsbury, and further on to the North West and Midlands.”

 

Extended with large living space and adjoining paddocks

 

Cefn Broniarth is a detached, four-bedroom property that has been extended. It includes adjoining outbuildings, large and spacious gardens and adjoining paddocks.

 

This is in addition to the surrounding countryside views.

 

“The property has the opportunity to be extended in the future and the paddocks could be used for equestrian or livestock purposes,” said Mr Hudson.

 

The property is on the market at £450,000. An additional paddock extending to 2.98 acres is also available through a separate sale.

 

More details can be found at www.morrismarshall.co.uk or emailing welshpool@morrismarshall.co.uk or telephone 01938 554818.

 

MMP/NL can undertake a free appraisal of a property and market it to potential buyers throughout the UK through its online marketing tools and being a member of the Guild of Property Professionals.

 

MMP/NL has offices in eight towns, including Newtown, Oswestry, Aberystwyth, Welshpool, Llanidloes, Rhayader, Tywyn, Machynlleth and a showroom at Aberdyfi. It also has a specialist Rural Team based at Welshpool Livestock Sales and an associate office in London.

 

For more information, contact one of its local offices by visiting www.morrismarshall.co.uk.

Contact Us

Aberystwyth 01970 625020
Llanidloes 01686 412567
Associated London Office 0203 368 3986
Machynlleth 01654 702472
Newtown 01686 626160
Oswestry 01691 679595
Rhayader 01597 739994
Tywyn 01654 710388
Welshpool 01938 554818
Bishops Castle 01588 638511 
Rural Department 01938 552371

About Us

Our residential, commercial and rural property teams are based at 11 offices in, Aberystwyth, Bishops Castle, Llanidloes, Machynlleth, Newtown,  Oswestry, Rhayader, Tywyn, Welshpool. Window display in Aberdyfi.

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