Posted on Friday, July 24, 2020
At Aspire Sales & Lettings, we take great pride in ensuring you are up to date with changes in the housing market. No matter what decision you need to make, it is best to make an informed decision, and we will ensure you have all the information you need to feel more comfortable about your choices.
You will likely be aware that on 8th July, the Chancellor of the Exchequer, Rishi Sunak, increased the stamp duty threshold. This decision is only a temporary measure, but the leading points of change include:
For the stamp duty holiday, the Stamp Duty Land Tax (SDLT) is as follows:
The Treasury believes nine out of ten people buying property this year will not pay any stamp duty, as a result of this new measure.
According to Rightmove figures, there are more than 291,000 properties listed on Rightmove at a price less than £500,000. This accounts for 78% of all the properties on sale in England.
According to research carried out by the Centre for Economics and Business Research (CEBR), there will be an average saving of £4,400, and this will result in an additional 101,000 property sales in the next nine months.
While it is helpful to see the overall impact the stamp duty change is likely to have on the national housing market, we appreciate you are interested in learning what the changes mean for the local market, and you.
Using average prices provided by Rightmove, the average price paid for a property in Oundle in the past year is £351,961. Before the stamp duty threshold increased, a homeowner buying this property would have had to pay £7,598 in stamp duty. A first-time buyer would have had to pay £2,598 in stamp duty.
However, with the stamp duty holiday in place, both first-time buyers and homeowners buying their new home will pay no stamp duty at all, as long as they conclude the deal before 31st March 2021.
Being able to save more than £7,500 is welcome for many prospective buyers, and it is easy to see why this measure will persuade some households that it is worth their while moving home. When buying property, it is vital to consider the overall costs involved with the process, not just the price of the house.
According to Rightmove, the majority of properties sold in Oundle in the past year are detached properties, and the average selling price for detached properties is £417,961. Previously, buying a property at this price would have resulted in a stamp duty bill of £10,898. Now, with the stamp duty holiday in place, there is no stamp duty to pay, saving the buyer more than £10,000.
Jeremy Leaf is a former RICS residential chairman, and he said; "The stamp duty holiday has been well trailed but is welcome not the less. The most pleasing aspect is that it is due to start immediately because if it had been delayed it would have had a negative impact on the market until it was introduced.“
Jeremy continued by saying; “The Chancellor is clearly under pressure to reduce the prospect of unemployment getting out of hand and the economy plunging into an even deeper recession. The housing market is a key driver of activity with its multiplier impact on other businesses, as well as its positive impact on job and social mobility. What’s good for the housing market is good for the economy. However, we will be looking to see an impact on transactions rather than prices as we try to keep pent-up demand momentum moving, even as furlough and other government support is withdrawn.”
When you are looking for specialist support in selling or letting, choose a local agent who listens to their clients carefully and who takes pride in providing the utmost in customer care. We appreciate these are challenging times, but if you have any property market questions, please feel free to contact Aspire Sales and Lettings, and we will do our best to assist you.