Stamp Duty Threshold Increased

Wed 15 Jul 2020

ADM Residential is committed to providing you with the best standard of service in the property market. On 8^th July, Rishi Sunak, the Chancellor of the Exchequer, increased the stamp duty threshold in a temporary measure. The key points of the 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

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%

This measure will impact buyer demand, and therefore it will shape what vendors do too, and if you want to know how it affects the Huddersfield housing market, we are here to assist you.

Why has the SDLT changed?

The change has been brought about in reaction to the COVID-19 pandemic, and how it has affected the housing market and property buyers. The new threshold will hopefully help buyers lower the cost of buying a home, making the process more affordable.

How much could a buyer save?

As of July 2020, Zoopla lists the average price of property in Huddersfield as £183,161. Previously, a buyer (who was not a first-time buyer) would have paid £1,163.00 in stamp duty. Now, with the stamp duty holiday in place, there is no stamp duty to pay on this property price.

A minor saving can also be made when considering terraced properties, the property type which is most commonly sold in Huddersfield, according to Zoopla.

With terraced properties, which have an average price of £126,747 in Huddersfield according to Zoopla, there is a slight saving. This price was just above the threshold where stamp duty was previously payable, so for the temporary increase, a buyer will save £34 on stamp duty when purchasing at the average price of terraced properties in Huddersfield.

Zoopla lists the average price of detached properties in Huddersfield as £292,4218. Previously, this would have carried a SDLT payment of £4,620 but for now, there is no stamp duty to be paid on this purchase.

Former RICs chairman welcome the stamp duty change

Jeremy Leaf is a former RICS residential chairman, and he said; "The stamp duty holiday has been well trailed but is welcome not the less. The most pleasing aspect is that it is due to start immediately because if it had been delayed it would have had a negative impact on the market until it was introduced.“

Jeremy continued by saying; “The Chancellor is clearly under pressure to reduce the prospect of unemployment getting out of hand and the economy plunging into an even deeper recession. The housing market is a key driver of activity with its multiplier impact on other businesses, as well as its positive impact on job and social mobility. What’s good for the housing market is good for the economy. However, we will be looking to see an impact on transactions rather than prices as we try to keep pent-up demand momentum moving, even as furlough and other government support is withdrawn.”

We are pleased to say the local market has been active since the housing market re-opened, and we expect this to continue in light of the stamp duty change. ADM Residential has experienced a 135% inrease on buyers requesting details and signing up to our mailing list. We have also experienced a 250% increase in volume for rentals.

These figures indicate there is demand from buyers and tenants, and whether you are looking to buy, rent, sell or let, we will help you connect with the right people in the local market.

If you are selling your Huddersfield home, contact ADM Residential today. You can book a valuation or just chat about how we make a difference in selling your home. Of all the estate agents Huddersfield vendors can call on, we like to think we make a difference in selling local homes.