House sales in the UK have increased following the introduction of a stamp duty holiday during the current global pandemic. This was introduced earlier in the year with a view to protecting jobs in the housing sector and the associated supply chains. The increase in sales of residential property has helped protect more than three quarters of a million jobs in the sector during uncertain times, and the scheme is set to continue through to March 2021.
When the scheme draws to an end next year, it’s expected that house sales will involve a certain level of tension as house buyers try to complete proceedings before the deadline. To avoid this rush in the spring next year, you may want to consider starting the process sooner rather than later.
How will you be affected by the stamp duty holiday?
If you’re a first-time buyer, you may be aware that you could already purchase a home up to the value of £300,000 without needing to pay stamp duty. Since the introduction of the stamp duty holiday, those who are not first-time buyers have flooded the market and are competing directly with first-time buyers for available properties.
Those who are in the market for their next home are likely to benefit to a much greater extent than those buying their very first home. These buyers would normally be required to pay stamp duty as they are not first-time buyers, but under the current scheme the fee is waived. For example, if a person was to buy a new home for around £500,000 they would be expected to pay roughly £15,000 on top of that in stamp duty fees. Until the scheme ends next year, this additional fee would not be applied.
A nice side-effect of the scheme has been that homeowners are upgrading their residences and are vacating smaller, more affordable homes. This has opened up availability of homes that appeal to first-time buyers and is encouraging movement within the housing market in general.
Looking to buy or sell a property?
If you’re looking to buy or sell a property then Bowcock and Pursaill can provide you with honest, impartial advice. Our solicitors specialise in the following areas of residential law:
- Advice on sales and purchases
- Advice on secured lending
- Auction purchases and sales
- Buy to let and residential investment
- New build off plan purchases
- Probate sales
- Transfers of property
Contact us today to arrange an appointment with our friendly, professional team*. We are operating in a COVID-secure way to protect our clients and members of staff but are happy to discuss any aspect of your residential property issue over the phone.
*Please note face to face appointments available at our Leek office – please call to arrange.