The stamp duty holiday is likely to see more buyers enter the market. Some sources say they expect an additional 100,000 houses to be bought because of the change. If you are keen to know more about how it will impact the Bury St Edmunds housing market, we are here to assist you.
· 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
For the stamp duty holiday, the Stamp Duty Land Tax (SDLT) is as follows:
· When the property price is up to £500,000 – the SDLT is Zero
· For the portion of property price from £500,001 to £925,000 – the SDLT is 5%
· For the portion of property price from £925,001 to £1.5 million – the SDLT is 10%
· For any portion above £1.5 million – the SDLT is 12%
According to Zoopla as of late July 2020, the average price paid for property in Bury St Edmunds in the past 12 months is £299,233. This sum can be broken down into the following property types:
· Average price paid for flats in Bury St Edmunds: £180,555
· Average price paid for terraced properties in Bury St Edmunds: £228,778
· Average price paid for semi-detached properties in Bury St Edmunds: £258,277
· Average price paid for detached properties in Bury St Edmunds: £392,189
As all these average prices fall below £500,000; anyone buying property in Bury St Edmunds before April 2021 (at these prices) will not have to pay stamp duty. This might be a factor which helps many prospective buyers to enter the market with greater intent than they initially planned.
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.”
At Coakley & Theaker, we aim to support the local community as much as we can, and we know this is an extremely trying time. A lot of people are looking for support and guidance, and if you have any property or housing related questions, we are more than happy to assist you, so contact us today.