Stamp Duty Changes And Staying Up To Date

Posted on October 14, 2022October 22, 2022 by colin_williams

If you want to make a move in the housing market, it makes sense to stay up to date with the latest changes. Recent stamp duty changes will mean some potential buyers will look at the market differently, which impacts buyers and vendors.

If you want to be informed about how these changes impact you, we can help.

What is Stamp Duty?

Stamp duty is a tax that is levied on the purchase of property in the United Kingdom. The tax is calculated as a percentage of the purchase price of the property, and is payable by the buyer.

Why is stamp duty important?

Stamp duty is an important source of revenue for the government, and helps to fund public services such as education and healthcare. The tax also helps to cool the housing market by making it more expensive to buy property, which can help to prevent house prices from rising too rapidly.

How much stamp duty do I have to pay?

The amount of stamp duty you have to pay depends on the purchase price of the property and your personal circumstances.

When do I have to pay stamp duty?

You will need to pay stamp duty within 14 days of completing the purchase of your property. Failure to do so may result in penalties or interest being charged.

What happens if I don’t pay stamp duty?

If you fail to pay stamp duty, you may be liable for penalties or interest charges. Additionally, the government may take legal action against you in order to recover the outstanding tax.

What are the stamp duty rates now?

Stamp duty tax bands from 23 Sept 2022

Up to £250,000 – 0%
£250,001 to £925,000 – 5%
£925,001 to £1.5 million – 10%
Over £1.5 million 12%

First-time buyers

Up to £425,000 – 0%
£425,001 to £625,000 – 5%
Homes priced above £625,000 – Normal rates apply

Tim Bannister from Rightmove believes stamp duty changes will stimulate demand in the market. Tim said; “If the stamp duty cuts lead to a big jump in prospective buyers competing for the constrained number of properties for sale, then it could lead to some unseasonal price rises over the next few months. But because the change is permanent, and because of gathering headwinds such as rising mortgage rates, we expect to see a more gradual increase in demand compared with the surge when the temporary stamp duty holiday was announced in 2020. With more buyer demand we would also expect that the current trend of more properties coming to market will continue, offering more choice for buyers.”

Contact Williams of Petersfield for all your 2022 housing market needs

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.

Petersfield – Stamp Duty Impact

Posted on August 11, 2020 by colin_williams

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 8^th 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 31^st 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.

Calls For Stamp Duty To Be Changed To Aid Downsizers

Posted on October 29, 2018October 30, 2018 by colin_williams

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.

Tag: stamp duty