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
At Hunters Camberwell, we are keen to ensure you remain up to date with all property news, and if you are looking to find out the impact the stamp duty threshold increase has on buyers in and around Camberwell, we are here to help.
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%
Why has the SDLT changed?
This change has been undertaken to help buyers and the housing market. By helping buyers to lower the cost of buying a home, it makes the process of buying a home more affordable.
The move has been carried out to assist buyers who have been negatively impacted by the COVID-19 pandemic, and to provide assistance to the housing market. According to figures provided by Halifax, property prices have fallen for four consecutive months. Helping buyers to lower the cost of purchasing property will assist more people to buy a home.
How much could a buyer save?
As of July 2020, Zoopla lists the average price of property in Camberwell as £588,865. Previously, a buyer (who was not a first-time buyer) would have paid £19,443 in stamp duty. Now, with the stamp duty holiday in place, the stamp duty for this price is £4,443.
This equates to the £15,000 saving created by the raising of the threshold.
The same can be said when looking at flats, the property type which is most commonly sold in Camberwell, according to Zoopla.
The average price paid for flats in Camberwell is £436,334. Previously, the stamp duty was £11,816 whereas now, with the stamp duty threshold having increased, there is no stamp duty to pay on this property price.
This equates to a sizable saving for buyers in Camberwell, and if you are looking for guidance on buying or selling in the area, we are here to help.
Industry experts have discussed the stamp duty holiday and its impact on buyers
Miles Shipside is the Housing Market analyst for Rightmove, and he said; “Buyers in higher-priced areas with bigger deposits would benefit most if the Stamp Duty threshold was raised to £500,000.
Miles continued by saying; “There’s currently record housing demand but the market also needs the ability for lenders to extend the availability of low deposit mortgages, vital to healthy first-time buyer volumes that help drive the rest of the market. A Stamp Duty holiday without better mortgage availability isn’t really helpful for hard-pressed potential first-time buyers who are already mainly exempt from it anyway.”
If you are looking for guidance or information regarding the housing market, please get in touch with Hunters Camberwell. As a local estate agent who has the support of a national network, we are ideally placed to provide you with all the help and guidance you need to make an informed decision, so please contact us today.