VAT INCREASE ON HOUSING MARKET

However, Douglas Sleaper, Group Sales Director for Townends Estate Agents part of the Badger Holdings Group believes the increase will not be significant enough to unduly upset the housing market or deter those wishing to move from doing so. Sleaper estimates the average associated moving costs, such as surveying, conveyancing and arrangement fees will only amount to an approximate £50 total increase and would be insignificant when compared to buyers finding a deposit large enough to secure a mortgage which will offer affordable repayments.

“In addition, there are more and more professional investors in the market, taking the place of first time buyers, looking for value and enhanced yields as they forecast strong rental demand for the foreseeable future.  It is these investors and landlords who may wish to renovate a property on purchase that will bear any brunt of the VAT rise.”