Big change around property prices comes into force on June 1

The impending abolition of the Multiple Dwellings Relief (MDR) by the government, set to take effect from June 1, has sparked a rush among house buyers eager to beat the deadline and avoid potential financial repercussions. This change particularly affects buyers of properties with subsidiary dwellings like granny annexes, potentially leaving them facing unexpected additional costs.

The MDR abolition could have significant financial implications for buyers, especially those purchasing multiple properties in a single transaction. Critics have labeled the move a “granny annexe tax,” and experts warn that impacted buyers could face substantial additional expenses, potentially amounting to tens of thousands of pounds.

Previously, building a mobile annexe allowed buyers to benefit from stamp duty tax relief, provided the construction of the annexe commenced on the day of property completion. However, the upcoming change will eliminate this tax relief opportunity. The announcement has led to a surge in searches related to “stamp duty annexe,” indicating growing concern among potential buyers.

Gary Clayden-Smith from Mobile Annexe Ltd highlighted the practical benefits of annexes, such as enabling multi-generational living arrangements or providing support for older family members while maintaining independence. He emphasized that the removal of MDR not only impacts finances during a period of economic strain but also complicates caring for loved ones.

Overall, the abolition of MDR presents challenges for both buyers and those seeking to provide alternative housing solutions. As the deadline approaches, buyers are seeking solutions to mitigate the financial impact of the change and ensure the well-being of their loved ones.

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