If you are keen to know what impact the stamp duty cut is likely to have on the Crowthorne housing market, we are here to assist you. At Frank Schippers, we are local housing market specialists, but we also pay attention to what is happening across the country.
If you would like to discuss the stamp duty cut, or any other housing issue, please get in touch. We can also arrange a property valuation for you, helping you enter the market with greater confidence.
What the stamp duty changes mean
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:
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Stamp duty threshold is now £500,000
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This increase in stamp duty threshold is set to run until 31st March 2021
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The increase in stamp duty threshold takes place immediately
How will the Crowthorne market be affected?
According to Zoopla, as at the end of July 2020, the average price paid for property in Crowthorne (over a 12-month period) is £439,561. With the stamp duty holiday in place, buyers will pay no SDLT on this property. This represents a saving of 11,978.05.
Most people would view the opportunity to save close to £12,000 as being an attractive proposition. This measure will hopefully help some buyers who were evaluating their options to decide it is worth their while buying a new home.
Also, this is good news for vendors. If there are more buyers looking for homes, vendors can feel more confident.
Landlords might be motivated to buy additional property too
Also, while landlords and property investors are still required to pay the additional 3% SDLT when buying property, they too benefit from the stamp duty change. This means these buyers can also save money, perhaps presenting them with a better than expected rental yield. This might lead to a larger supply of rental property in and around Crowthorne.
Marc von Grundherr, a leading name in the property industry, said; “Breaking down the current property stock available on the market really gives us a good idea as to just how many people are due to benefit from the changes to stamp duty announced last week. The figures show that the vast majority of homebuyers will be better off as a result. Even in London, there will be a considerable saving for a vast number of those transacting across almost every borough.”
Marc continued by saying; “However, there is a chance that savvy home sellers who may have seen the value of their property slump due to the recent pandemic will now increase their asking price by that little bit extra. Our advice to homebuyers would be to know your market, stick to your guns when making an offer, and keep your stamp duty saving in your back pocket. You can use it as a bargaining chip should you need it further down the line when negotiating, but don’t be forced to over offer straight away.”
If you have any housing market questions or queries, please feel free to contact us. At Frank Schippers, we are here to support you in this trying time, so contact us today.
