At Belvoir Sutton, we want to ensure you stay up to date with what is happening in the housing market. If you have been wondering how the stamp duty holiday will affect you or how it will impact the Sutton housing market, we are here to assist you.
If you have questions on this matter, or any housing topic, please get in touch with us today.
Stamp duty cut and its impact on Sutton 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 Sutton housing market
According to Zoopla, as of July 2020, the average price paid for property in Sutton was £466,395. 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 Sutton, as per property type:
· Average price paid for flats in Sutton: £271,275
· Average price paid for terraced properties in Sutton: £425,662
· Average price paid for semi-detached properties in Sutton: £520,857
· Average price paid for detached properties in Sutton: £810,234
The average price paid for flats and terraced properties in Sutton falls beneath the stamp duty holiday threshold. This means all of these property purchases will incur no stamp duty charge.
Buyers in Sutton can lower the overall cost of buying property
With respect to the average price paid for semi-detached property in Sutton, there is stamp duty to be paid. However, the charge of £1,042 is a lot more appealing than the previous stamp duty charge, which would have been £16,042.
For detached property in Sutton, the stamp duty payable is £15,511. This is a lot of money, but there is a saving of £15,000 on the previous stamp duty charge of £30,511.
It is good to see buyers benefiting from the stamp duty cut, but equally, vendors in Sutton should benefit from this measure. When there is a greater number of buyers looking for a home, vendors should feel more confident about entering the marketplace.
If you are starting the sales process, or wondering what your next move will be, you can arrange for an instant valuation to take place. Our instant valuation tool is free, quick to use and very easy to arrange, so contact Belvoir Sutton today if you would like to arrange a valuation during the lockdown period.
