On Wednesday 8th July, the Chancellor of the Exchequer, Rishi Sunak, has announced an increase in the stamp duty threshold in the Summer Update. 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
At Stones Residential, we are keen to assist you make an informed decision in the housing market. If you would like any guidance, please contact us today. We can offer you a free valuation if you plan on selling your home.
Stanmore property and the stamp duty holiday
Taking the average property prices provided by Zoopla, we look at the average price for properties in Stanmore in the past 12 months.
- Average price paid for property in Stanmore in past 12 months: £669,535
- Average price paid for flats in Stanmore: £375,532
- Average price paid for terraced properties in Stanmore: £524,147
- Average price paid for semi-detached properties in Stanmore: £610,464
- Average price paid for detached properties in Stanmore: £1,108,297
The figures below represent the former stamp duty that would have been paid at the average price, and this figure represents the saving on offer to people buying a home (not their first home or a buy-to-let property).
- Former average stamp duty for property in Stanmore in past 12 months: £23,476
- Former average stamp duty for flats in Stanmore: £8,776
- Former average stamp duty for terraced properties in Stanmore: £16,207
- Former average stamp duty for semi-detached properties in Stanmore: £20,523
- Former average stamp duty for detached properties in Stanmore: £54,579
With the stamp duty holiday, there would be no stamp duty to pay on the average price of flats in Stanmore, and there would be a saving of £15,000 for buyers purchasing a terraced property, semi-detached property or detached property at the average price in Stanmore.
This represents a significant saving, and it might make all the difference for buyers.
BTL landlords can also benefit
While BTL landlords expanding their property portal are still subjected to the additional 3% surcharge in stamp duty, they will save money through the stamp duty holiday.
- New stamp duty for landlords buying property at average price in Stanmore in past 12 months: £28,562
- New stamp duty for landlords buying flats in Stanmore: £11,265
- New stamp duty for landlords buying terraced properties in Stanmore: £16,931
- New stamp duty for landlords buying semi-detached properties in Stanmore: £23,837
- New stamp duty for landlords buying detached properties in Stanmore: £72,828
Industry experts support the stamp duty holiday
Miles Shipside is the Housing Market analyst for Rightmove, and he said; “Buyers in higher-priced areas with bigger deposits would benefit most if the Stamp Duty threshold was raised to £500,000.”
Miles continued by saying; “There’s currently record housing demand but the market also needs the ability for lenders to extend the availability of low deposit mortgages, vital to healthy first-time buyer volumes that help drive the rest of the market. A Stamp Duty holiday without better mortgage availability isn’t really helpful for hard-pressed potential first-time buyers who are already mainly exempt from it anyway.”
Jeremy Leaf is a former RICS residential chairman, and he said; "The stamp duty holiday has been well trailed but is welcome not the less. The most pleasing aspect is that it is due to start immediately because if it had been delayed it would have had a negative impact on the market until it was introduced. “
Whatever your circumstances are, or what move you would like to make next; we are here for you. Stones Residential prides itself on offering the best standard of service to our clients, and we work hard to help you achieve your property goals. If you would like to arrange an appointment or get more details on how we can help you sell your property, contact us today online or by calling us on 020 8954 0045.
