Residential Property Update

It has been just over 2 months now since the property market was able to open again after the initial lockdown. Although things obviously cannot return to exactly how they were before, changes to processes have been made and the property industry is up and running again.

Naturally because of lockdown there was a build-up of property sales and purchases that were paused and unable to proceed. As lockdown eased these transactions were able to progress and complete. To help the housing market further it was announced that there would be a Stamp Duty (SDLT) holiday. This could result in significant savings for home buyers. The temporary tax break, which was introduced on 8th July, means that buyers in England and Northern Ireland won’t pay any stamp duty on homes up to £500,000 until 31st March next year. You would still pay the 3% surcharge if you were buying a second property.

Head of Residential Property, Simon Pook, said:

“Since lockdown we have seen a surge in sales and purchases being agreed from pent up demand following the lockdown. This in turn has led to further sales and purchases being agreed. The housing market is still very active and the reduction in SDLT helps all levels of the market which should help the local housing market up until the end of the holiday in March.  If you are thinking of buying a property however, do start looking now, don’t leave it until the last minute and risk missing the deadline. We can see that there will be a great rush to complete matters prior to the end of March which could lead to difficulties getting surveys and removals booked.”

To give you an idea of the savings that can be made with the SDLT holiday here is a look at the local regions:

Region Average Asking Price (June 20th 2020) Stamp Duty Saving
South West £321,996 £6,100
South East £419,595 £10,980
London £628,284 £15,000

According to Right Move the number of people phoning and emailing estate agents about property for sale hit a new record on Wednesday (the day of the announcement), up 1% on the previous record set on 11th June and up 93% on the same day in 2019.

RightMove also saw enquiries about new-build homes also hit a record, up 21% on the previous record set back on 11th June.

Request from potential sellers to have their home valued hit a record high, up 35% on the previous record set back on 22nd June and up 89% on the same day in 2019.

In the first half hour of the chancellor making the stamp duty holiday announcement, they saw the number of people looking oat their website jump by 22%.

We hope the market continues to be positive. If you have any residential property related questions please contact our team on 01256 320555 or email mail@clarkeandson.co.uk.

Simon Pook

Head of Residential Property

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