Stamp Duty And Impact On Property Demand

26th August 2020 posted in Sellers Buyers

One problem that often arises in the housing market is that people have very little patience regarding changes. When a new measure is introduced in the housing market to support buyers or to make it easier for people to purchase a home, people want to see instant results.

It is just over a month since the stamp duty holiday was introduced, but there are many observers in the industry keen to see proof that demand has risen, and more homes are being sold.

At Hunters Stoke Newington, we know more buyers are looking for property. Online statistics back this, and we have dealt with buyers and vendors in the market who have decide to act because of the stamp duty holiday.

It is still very early days in terms of impact for the stamp duty holiday, but expectations, and initial findings, are positive.

Industry experts are analysing the market on a daily basis

Rightmove’s property expert Miles Shipside said: “This move will help to keep the nation and wider economy moving because keeping the current momentum going will help prevent destabilising falls in property prices as unemployment grows, and enable a quicker economic recovery. Lockdown prevented 175,000 would be sellers from coming to market so we hope this Stamp Duty holiday will provide the spur for those missing movers to come to market.”

Miles continued by saying; “They will find there’s currently record demand for their properties from prospective buyers, with Rightmove enquiries to agents now double what they were before lockdown. Home-movers will be grateful that the changes come into effect straight away so they don’t have to delay their plans, and what we could see now is people rushing to get a price agreed before some sellers put their prices up in the hope people will be able to pay more because of the tax savings.”

Stay in touch with Stoke Newington house prices

Information provided by Dataloft and Rightmove is always good to review when it comes to determining how the market is performing, and there is interesting information to consider.

Rightmove states; “Properties in Stoke Newington had an overall average price of £682,454 over the last year. Overall, sold prices in Stoke Newington over the last year were 5% up on the previous year and similar to the 2017 peak of £680,895.”

Information from Rightmove and Dataloft suggests the stamp duty holiday has led to a 14% surge in calls and emails to agents. There has been a surge in demand for properties priced between £500,000 and £750,000. There has been a rise of 40% for this property group, and in 2019, property in this price bracket accounted for 7% of sales.

Homes priced at more than £750,000 have experienced an 11% surge in demand, and in 2019, they represented 4% of sales.

If you need any help or guidance regarding property matters, please get in touch. As your local housing market specialists, we will do what we can to ensure you make your next house move in style. Contact Hunters Stoke Newington today for all your housing and letting needs.