Figures produced by Nationwide showed that 42% of the total stamp duty paid on residential properties in the last year came from London. However, this figure represented only 15% of house purchase transactions in the UK.
Such imbalance mirrors the gap between house prices in the capital and in the rest of the country. As reported by the latest price index by the building society, the average price for a house in London is double the price in the rest of the UK.
The soaring stamp duty in London goes from 1% on homes priced at £125,000 to £250,000, to 3% on properties worth £250,000 to £500,000, until it peaks at 7% for properties costing £2 million or more (rates being applied to the entire value rather than just the portion over the threshold).
For example, a £249,000 house would have a tax of £2,490, but if the value inched up to £251,000, the levy would increase to £7,530. This sparked complaints amongst estate agents, who have called on the Government to make changes to stamp duty after these new figures were revealed.
Letting rooms, if not the entire property, seems to be the only solution for homeowners to write off at least some of these expenses. Therefore, today more then ever, homeowners who let their houses are in need of a property management tool that helps them manage their properties on the go.
Arthur, the new online property management software, helps landlords manage their properties from their computer or mobile devices in just a few steps. It guarantees organisation and optimises communication between everyone involved in the process, so that homeowners can carry on with their activities without having to worry about their properties.
If you are a property manager, property owner, landlord or letting agent, your business will save time and money by using Arthur. Try out the free Arthur Demo today to see how!