Stamp Duty Impact – Savings For Buyers

August 20th 2020
By: Thomas Morris
Stamp Duty Impact – Savings For Buyers

The stamp duty holiday introduced in early July 2020 is expected to aid buyers in the housing market. Some industry specialists have predicted as many as an additional 100,000 houses will be sold because of this measure.

If this is the case, or is even remotely close to true, it will also be good news for vendors. When you know there is an abundance of willing buyers looking for property, you can feel more confident about placing your home on the market.

At Thomas Morris, we are here to assist you in all housing matters. If you would like to discuss your options, please get in touch and we will happy to talk you through the current market. If you are looking to sell your home, we can arrange a valuation for you, allowing you to enter the market with greater confidence.

Stamp duty changes – the basics

On Wednesday 8th July, the Chancellor of the Exchequer, Rishi Sunak, announced an increase in the stamp duty threshold. The key points of the stamp duty changes are:

  • Stamp duty threshold is now £500,000

  • This increase in stamp duty threshold is set to run until 31st March 2021

  • The increase in stamp duty threshold takes place immediately

How will buyers be affected?

It should go without saying that making a home more affordable is of benefit to buyers. It is also vital for buyers to remember that the property price of the house isn’t the overall money spent when buying a home.

There are additional fees for buyers to consider, which includes stamp duty fees. By removing or lowering stamp duty fees, buyers don’t need to spend as much money in the buying process, and this will hopefully boost the market.

According to Zoopla, as at the start of August 2020, the average price paid for property in Biggleswade (over a 12-month period) is £324,291. With the stamp duty holiday in place, buyers will pay no SDLT on this property. This represents a saving of £6,214.55.

In the grand scheme of things, a saving of just over £6,000 might not sound much in context of buying a home, but it still represents a significant saving. Also, with stamp duty having to be paid soon after the property purchase, this removes one of the up-front costs associated with buying a home.

This should alleviate some of the pressure of this time-period for buyers.

Any significant saving is great news for buyers

In Royston, the average price paid for property in the past 12 months is £425,241. With the stamp duty measure in place, there is no SDLT on this property, as long as the property is bought before the 31st March deadline.

This represents a saving of £11,262.05 for a buyer, which most people will agree is worth obtaining.

If you are looking for help with any matter of the property market, it is best to speak to property professionals. You can book a sales or rental valuation appointment directly on line at a time and date of your choice by clicking here or alternatively click here for individual branch contact details.