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.