Stamp Duty Holiday: What can you expect in the new housing market?
After the challenging pandemic situation, London’s homebuyers welcome a positive change in the property market with the announcement of the stamp duty holiday.
The new policy couldn’t be issued at a better time- the real estate market needs it most now. There are high expectations about the outcome of this discount and homebuyers, sellers and estate agents in Buckingham are particularly hopeful of its strong impact on the UK’s recovering property market.
What’s your savings with stamp duty holiday?
In a market that has been relatively slow-paced since the pandemic, this can be just the push needed to keep the ball rolling. The UK government’s proactive measure is a relief to homebuyers, who can benefit from a considerable saving of £15,000, in a home purchase.
How much will you be charged?
London home buyers stand to get substantial advantages if they buy a property now. If you’re buying a home up to £500,000, you pay nothing, contrary to the £15,000 you would have paid previously.
For property priced up to £925,000, you will pay only 5% on the amount between £500,001 to £925,000. For instance, for a property priced £750,000, your stamp duty falls from the usual £24,286 to£ 9,286, which is a direct discount of £15,000.
The generous offer extends to the luxury property sector as well. For property that’s above £ 1 million, you would shell out a stamp duty of £27,500. Whereas, your current fee is slashed to £12,500.
A bid to get the market back on track
It’s no secret that this exemption is an attempt to revive the COVID housing market and encourage both first-time and seasoned buyers to move on and invest in their new home. There’s a surge of properties under £ 500,000 that are up for a quick sale. In turn, there’s been an increment in the higher- end property listings and selling: a much-awaited movement in real estate.
First-time home buyers deal
Mr. Rishi Sunak’s offer is clearly an invitation for first-time house buyers. And the evident focus here is to increase homeownership to a substantial extent. According to an analysis by Knight Frank, the 2020 housing market is expected to have a spike in the second half of 2020. So if you’re a seller, you can plan a quick sale this year, and for homebuyers, you could find some fantastic deals this year.
House price predictions
The 2020 pandemic housing priorities are gradually shifting towards greener belts. With work from home looking like an extended way of life now, for most of you, the home perceptions are very different from what it used to be.
Firstly, people are on the lookout for more space. The fact that you are working full-time at home, and kids homeschooling, most of the ‘new normal’ buyers and renters prefer homes that are spacious compared to their current place. Whether apartments or detached homes, the need for a more spread- out living is trending among the property seekers.
Secondly, the lockdown has opened our minds to wellness. And home buyers prefer to have homes with gardens or access to green spaces. The stress on health and fresh air added to social distancing, which is going to be a part of our lives for much longer are the main reasons for these changes. It’s growing common for people looking to move home or buy a new home that satisfies all these requirements.
According to a report, more than 79% of estate agents say that people are looking at homes that are appropriate for remote working. And about 96% of letting agents report that properties with fast broadband connections, houses with an extra bedroom which can be used as a workspace – are the top enquiries. Furthermore, landlords and sellers are competing to offer homes with better outer space, which is now a growing essential among Londoners.
Stamp duty holiday and the new market
The lockdown dreams for space and the timely stamp duty discount are causing a rush among house buyers. The buy-to-let sector is no exception. Many are considering investing in a buy-to-let property when the market is evolving while taking maximum advantage of the special stamp duty temporary offer.
With about 90% of homebuyers in England and Northern Ireland benefiting from this holiday, the UK housing market is in the threshold of a potential rise.
An initiative like this can help people buy, sell, redecorate or upgrade their homes with confidence, while it drives growth and new job opportunities.
This article was written by Alexander & Co who have some fantastic property that you will fall in love with while you also save on your stamp duty fee.