LGC & Stamp Duty Holiday Impact

20th August 2020 posted in BUYERS

If you are intrigued by the stamp duty holiday, but you would like to learn more about its impact on you, and the housing market in Letchworth Garden City, we are here to assist you. We are local property market specialists, and if you would like to arrange an appointment to discuss your options, please get in touch.

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

LGC housing market

According to Zoopla as of early August 2020, the average price paid for property in Letchworth Garden City in the past 12 months is £364,215. This sum can be broken down into the following property types:

·         Average price paid for flats in Letchworth Garden City: £171,091

·         Average price paid for terraced properties in Letchworth Garden City: £301,601

·         Average price paid for semi-detached properties in Letchworth Garden City: £429,854

·         Average price paid for detached properties in Letchworth Garden City: £599,387

The average price paid for property in Letchworth Garden City is beneath the stamp duty temporary threshold, so anyone buying at this price will not pay any stamp duty, as long as the deal concludes before the deadline.

When buying property at the average price for semi-detached property in LGC, a buyer won’t pay any stamp duty. Before the stamp duty holiday was implemented, the stamp duty fee for a purchase of this magnitude would have been close to £11,500. With no stamp duty payable, this represents a significant saving for buyers in the local area.

Some buyers will save a considerable amount of money

The average price paid for a detached property in LGC is above the threshold, so there is a stamp duty charge to be paid. However, the fee of £4,969 is a considerable saving for a property buyer. At this price, a buyer saves £15,000; so you can see why buyers at this price level are supported by the stamp duty holiday.

Miles Shipside from Rightmove has spoken about the initial uptake in demand for property relating to the stamp duty holiday. Miles said; “The uplift in enquiries is likely a mixture of people looking in new areas to see what they can now afford, changing their search criteria to bigger, slightly more expensive homes, and new movers coming into the market because they now have enough extra budget to move home.”

If you are looking to make a move in the housing market, contact us and we will be more than happy to assist you. If you are looking for property in Letchworth Garden City, we are more than happy to show you the very best of what the local area has to offer.

If you plan on selling your Letchworth Garden City property, wouldn’t you want help from an estate agent who knows and cares about the local area? Our team understands the local housing market, and we will help you connect with buyers.

Also, as local estate agents, we are ideally placed to value your home. The most realistic valuation of property takes local factors into consideration. Contact us today to ensure you make the most informed decision you can when moving on in the housing market.

Currently, in line with Government guidelines, our Letchworth Garden City branch has reopened and is again staffed with sales and lettings personnel. To clients old and new, if you have any queries or need advice on property sales and lettings then please call 01462 481100 or email ian.ellmers@country-properties.co.uk.