It was great to hear the latest set of economic stimulus measures from the government. In particular changes to stamp duty thresholds to help home buyers and developers.
From the 8th July 2020 stamp duty thresholds, previously set at £125,000 in England and Northern Ireland (£300,000 for first-time buyers) were raised to £500,000, until the end of March 2021.
This will ease the burden of buying costs for home hunters and add money to their home buying piggy banks.
The Chancellor commented that the average saving will be £4,500 and that nearly nine out of ten home buyers, this year, will not have to pay stamp duty.
How much one can save will depend on how much the property costs. As a general rule, the more expensive the property, the more you’ll save, up to the maximum property value of £500,000.
Previously if you were to buy a property for £400,000 in England, and you’re not a first-time buyer, you would usually pay £10,000 in stamp duty, made up of £2,500 on the portion between £125,001 and £250,000, and £7,500 on the portion between £250,001 and £400,000).
In this scenario this represents £10,000 which no longer needs to be allocated to the payment of stamp duty, £10,000 that can be used for other purposes be that re-modelling or increasing your home buying budget.
Please note, for properties priced over £500,000, you only start to pay stamp duty on the amount that you pay for the property above £500,000
This is fantastic news for those looking to eek the most out of their budget and get the best home possible. This is especially great news for second-steppers, many of whom will now be able to move into a larger property, one which maybe better meets their needs without the added financial pressure of having to pay thousands of pounds in stamp duty.
So dream a new home buying dream, and enjoy the stamp duty holiday while you can.
House builders up and down the UK have reported that interest from potential buyers has been strong and growing week-on-week since the easing of measures allowing the property market to open back up.
Whilst the stamp duty holiday won’t affect first time buyers it is a great news for second-steppers many of whom will now be able to move into a larger property, one which may better suit their needs and be a more attractive option without the added financial pressure of having to pay thousands of pounds in stamp duty.
It has been very encouraging to see interest and activity grow in the housing market since coronavirus guideline changes in mid May. From speaking too many partners we are very aware though that there is still understandable caution to the resourcing of sales teams and offices with many developers reporting limited staff on the ground.
Interest in the housing market is likely to be be further stimulated by the chancellor’s stamp duty holiday and capitalising on every opportunity for a plot sale and completion will be critical.
More than that we are geared up to work alongside our house builder colleagues managing these incentive schemes ensuring that the process runs smoothly, the plot deals are secured and remain intact and that the buyer is delivered exceptional customer service.
Our specialist teams of sales negotiators and progressors are highly experienced in keeping chains together and ensuring that a sale goes through, typically in timescales shorter than market averages.
As well as managing incentive schemes on your behalf we are able to work with your staff to train them in Assisted Move and Part Exchange incentives equipping them with the information and confidence to be able to offer these to potential buyers. With this in mind we’ve been running a successful programme of online training. Give us a shout to find out more.
As ever, we are here for you. Let us know if you need anything to aid in your sales delivery.
We are pleased to say that we are are still valuing property during lockdown. To enable this, and to ensure the protection of all parties involved, we have brought in some checks.
From now, before an appointment, we will call the occupant to discuss COVID guidelines, going through a set of questions to check the safety of all involved.
Pending the answers to these questions we will then advise on how to proceed with the valuation.