At Country Properties Baldock, we want to ensure you know the impact the recent stamp duty holiday will have on you, and the local market. Most of the focus has fallen on how buyers are affected, but vendors are also likely to be impacted.
When it comes to the overall impact on the market, some housing market specialists predict as many as 100,000 additional homes will be sold because of the stamp duty holiday.
Vendors should have a greater level of confidence in entering the market when they know there are more willing buyers. If you would like to discuss selling your Baldock home, or you would like to arrange a valuation for your Baldock property, please contact us today.
Stamp duty holiday is in place
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
The Chancellor said: “Nearly nine out of ten people buying a main home this year will pay no stamp duty at all.”
How will the Baldock market be affected?
According to Zoopla, as at the end of July 2020, the average price paid for property in Baldock (over a 12-month period) is £358,220.
This is below the stamp duty threshold, which means won’t have to pay any stamp duty when buying a home at the average local price.
Detached properties in Baldock carry an average price of £611,067, which is above the stamp duty threshold. This means buyers at this level will pay stamp duty, but they’ll enjoy a saving of £15,000 compared to what they would pay if the stamp duty holiday was not in force.
The stamp duty associated with a purchase price of £611,067 is currently £5,553. Without the stamp duty holiday, a buyer would pay more than £20,000 in stamp duty fees for a purchase of this magnitude.
An increase in property sales is expected
David Whittaker, chief executive of buy-to-let lender Keystone Property Finance, said: “The Chancellor’s decision to cut stamp duty today will have positive implications for homebuyers across the country and will certainly help to stimulate the housing market. Importantly, this latest cut will also go some way towards providing a much-needed boost for the buy-to-let sector.”
David continued by saying; “The current 3% stamp duty loading for buy-to-let properties will remain, however based upon Keystone’s average property value of £333,000 the buy-to-let landlord will be making a stamp duty saving of approximately 40% due to the changes made today.“
In line with Government guidelines, our Baldock Branch has reopened and is again staffed with our experienced team. To clients old and new, if you have any queries or need advice on property sales and lettings then please call 01462 895061 or 01462 742077, or you could email firstname.lastname@example.org or email@example.com.