At David Harris & Co, we know many people are wondering what impact the stamp duty holiday will have on them, and the housing market in Finchley. If you have any questions, we are more than happy to assist you, and we can arrange an appointment to discuss the matter with you.
What are the stamp duty changes and what do they mean for buyers?
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
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%
Finchley housing market
According to Zoopla as of early August 2020, the average price paid for property in Finchley in the past 12 months is £741,222. This sum can be broken down into the following property types:
· Average price paid for flats in Finchley: £436,712
· Average price paid for terraced properties in Finchley: £772,052
· Average price paid for semi-detached properties in Finchley: £962,474
· Average price paid for detached properties in Finchley: £1,762,340
The average price paid for flats in Finchley is beneath the stamp duty temporary threshold, so anyone buying at this price will not pay any stamp duty, as long as the deal concludes before the deadline.
For all the other average price per property type, some stamp duty is payable, but there is a saving for every buyer.
For terraced properties, the stamp duty applicable is £13,602. Without the stamp duty cut, the stamp duty payable would be £28,602. For semi-detached properties, the stamp duty applicable is £24,997 whereas without the stamp duty holiday, a buyer would be paying around £40,000 in stamp duty.
For the average price paid for detached properties in Finchley, the current stamp duty is £110,230. This is a significant sum, but this figure is £15,000 more affordable than it would be if the stamp duty holiday wasn’t in place.
Stamp duty cut benefits vendors too
While most people thinking about stamp duty cuts focus on how it assists buyers, it shouldn’t be overlooked this will benefit vendors too. When there are more willing buyers in the housing market, vendors feel more confident in entering the marketplace.
Also, most households sell their home and buy a new property, so as long as the purchase is concluded before the stamp duty holiday deadline, there is a saving to be made.
Therefore, vendors should look to engage the market as soon as possible. If you plan on selling your home in Finchley, contact us and we will arrange a property valuation. A valuation is a vital asset when you enter the housing market, and it allows you to plan your next move with greater confidence.
If you have any questions about the housing market, or you need assistance, please contact David Harris & Co today.
