Petersfield – Stamp Duty Impact

If you want to know the likely impact of the stamp duty cut for buyers, vendors and the Petersfield housing market in general, we are here to assist you. At Williams of Petersfield, we aim to provide a specialist service to local buyers and vendors.

We know these have been challenging times for the housing sector, but many people believe the stamp duty cut will spark life into the market. Even though there was an initial flurry of activity when the market re-opened, there have been concerns as to whether this demand can be sustained. The introduction of the stamp duty cut will hopefully keep momentum going in the market.

Stamp duty cut and its impact on Petersfield property demand

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

While the deadline of March next year seems a lengthy one, be wary not to dwell too long on your decision. Sometimes property deals can become protracted, and no buyer wants to miss out on savings when it wasn’t their fault. We are more than happy to talk you through the process if it helps you form an opinion on what you should do next.

Impact on the Petersfield housing market

According to Zoopla, as of July 2020, the average price paid for property in Petersfield was £487,817. This is below the stamp duty holiday threshold, which means all property purchases at the average price in this area will not incur a stamp duty charge for buyers.

The following table details the average price paid for property in Petersfield, as per property type:

  • Average price paid for flats in Petersfield: £244,378
  • Average price paid for terraced properties in Petersfield: £342,527
  • Average price paid for semi-detached properties in Petersfield: £440,118
  • Average price paid for detached properties in Petersfield: £721,388

The average price paid for flats, terraced properties and semi-detached properties in Petersfield falls beneath the stamp duty holiday threshold. This means all of these property purchases will incur no stamp duty charge.

With respect to the average price paid for detached property in Petersfield, there is stamp duty to be paid. However, the charge of £11,069 is a lot more appealing than the previous stamp duty charge, which would have been 26,069.40. Anyone buying property at this price in Petersfield will enjoy a saving of £15,000 on stamp duty.

It is good to see buyers saving money when it comes to snapping up property, but it should be noted this will be of benefit to vendors too. When there are more people looking for houses, vendors can feel more confident when it comes to placing their home on the market.

Some industry sources believe as many as 100,000 additional properties will be sold in connection with the stamp duty cut.

At Williams of Petersfield, we aim to support the Petersfield 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.

Calls For Stamp Duty To Be Changed To Aid Downsizers

There are many opinions on what can be done to improve the UK property market and a growing amount of attention is falling on the significance of the elderly in the market. The UK has an ageing population, and as well as the economy and the healthcare sector, the fact that people are living for longer creates pressures in the property market.

It transpires that many people over the age of 65 would be keen to downsize from their current property to a smaller property but are struggling to find suitable or affordable property. One suggestion that has been floated is that stamp duty could be removed for elderly people downsizing into a smaller property.

In recent years, stamp duty has been amended to impact on landlords and investors buying additional property and for first-time buyers looking to step on to the property ladder. It is therefore not out of the question to consider that stamp duty changes may be applied to elderly people.

There needs to be movement in the market

If elderly people can downsize their property, paying a more affordable fee to buy a suitable property, there could be a greater amount of property on the market for people looking for a bigger home. In turn, if people can move up in the property market, the home that they leave behind can be used to welcome first-time buyers or downsizers. This would stimulate movement and spending in the property market, hopefully benefitting the market and allowing more people to buy the property that best suits their needs.

A recent study by an equity release adviser suggests that 63% of estate agents believe that the removal of stamp duty for property buyers making their final purchase would be a sensible move. The same study found that 32% of property owners classed as elderly state that stamp duty is a barrier to their movement.

Other solutions must be introduced to aid market movement

However, it is important to be aware that while close to one-third of relevant respondents suggested that the current stamp duty charge for elderly movers is a barrier, it isn’t the only barrier to movement. It may be that the removal of stamp duty for elderly homeowners moving creates some movement in the market but not as much as would be hoped for.

Petersfield landlords

Given the number of challenges in the property market, it would be wrong to assume that one new feature or solution would solve every problem in the market. However, there is a need for a range of solutions to be introduced to the market and there is no denying that adjusting stamp duty could lead to a more positive outcome in the market if other solutions are unveiled alongside this decision.

No matter what your position in the property market is, if you are looking for support and guidance with your next move, contact Williams of Petersfield. We are pleased to say we have helped many local clients move home and we look forward to assisting you.