Stamp duty holiday for 265 days from today!
Well we didn’t imagine that the esteemed Chancellor Rishi Sunak would this week, provide us with a really positive, helpful, and cost saving topic for the local and national property market – but he did bless him!
As many of you will already know our local property market is generally buoyant, and in some areas extremely active. Those who follow these updates will have seen last week’s that referred to simply excellent activity and results in June (in several of our offices they were better than June 2019!).
It is reasonable to say (based on reality), that our current level of activity in the residential property market across the local region is sustainable (even before Rishi spoke) with demand in some areas exceeding supply!
Add to this new normal, the window of stamp duty savings that are now available until the 31st March 2021, and it would seem reasonable to envisage a stronger, busier market, for the balance of 2020 and into the early part of 2021.
We must not underestimate other factors like job security and world trade, but for our small corner of country, we remain really positive, and current level of both sales and listings back this view.
So perhaps some examples of the stamp duty savings to be had, will help not only those thinking of buying, but also those thinking of selling and then buying!
Buying at £150,000 – save £500
Buying at £200,000 – save £1,500
Buying at £250,000 – save £2,500
Buying at £300,000 – save £5,000
Buying at £350,000 – save £7,500
Buying at £400,000 – save £10,000
Buying at £450,000 – save £12,500
Buying at £500,000 – save £15,000
If for example, you are currently in the process of buying at £195,000 you will be £1400 better off when you complete – enough for new carpets or maybe to get the decorators in?
The caveat (there always is one!) – you have to make sure you get the legal eagles to complete the purchase for you by 31/03/2021 – not too difficult at the moment (most sales take 2 to 3 months) but move forward to February 2021, and your conveyancing team will need to be on roller-skates!
Those seeking to buy a second property in addition to their main home, whether it’s for personal enjoyment or as a buy to let, will also benefit from the savings above, but will still have to find the additional 3% stamp duty on the full purchase price on completion. Taking our previous example of a purchase at £195,000, but as a second home for holiday use or investment income, and the stamp duty will be £5,850 instead of the £7,250 it would have been previously.
As always, if you are unsure about how much Stamp Duty will be due on your next purchase, you can always use the helpful calculator on our website: Click here
If you would like any more advice on the recent stamp duty changes, or indeed with any other property related matter, please do not hesitate to get in touch.
We just wonder if another member of Mr Johnson’s cabinet will be kind enough to find us a topic for next week?