As of September 2020, Zoopla states the average price paid for property in Stoke Newington (in the last 12 months) stands at £715,216. With the stamp duty holiday in place, a property buyer at this price is expected to pay £10,760.80 in stamp duty.
There are savings to be made in Stoke Newington
However, when the stamp duty holiday is over, the buyer will pay £25,760.80 in stamp duty charges. And, when the stamp duty holiday is over, the 2% surcharge for foreign buyers will also be in place. At the average price of property in Stoke Newington, this will add more than £14,000 to the overall cost of buying a home.
Therefore, a foreign investor buying at the average price of Stoke Newington property before the stamp duty holiday closes has to pay around £10,000 in fees. The same investor, at the same property price, buying after the stamp duty holiday closes and the surcharge is in place, will have to pay close to £40,000 in fees.
You don’t need to be particularly financially savvy to realise there is a huge incentive to move quickly in the housing market. Any foreign investor who has harboured a long-held desire to own property in London should act soon, or they face paying a higher price to do so.
Also, there will be overseas investors who haven’t considered buying in London, but upon seeing this opportunity, will do so. Quite often it is the people who act quickly and decisively that achieve the most, and this is certainly the case in the investment market.
If you own property in Stoke Newington, and you plan on selling soon, we can help. We will provide you with a property valuation. This valuation is the key starting point when it comes to selling your home.
Marc von Grundherr, a known name in the UK property sector, said; “The recently implemented stamp duty holiday has not only rejuvenated domestic buyer demand, but we’re also seeing foreign buyers starting to return to the capital in their numbers. In fact, the vast majority of our buyer interest coming from Asia has only been concerned with homes falling under the £500,000 threshold. This has been intensified due to the sour taste of a two per cent stamp duty surcharge on the horizon as the government continues to dampen what is a vital sector of the London property market.”
Marc continued by saying; “In any case, the stamp duty savings currently on offer have been heavily bolstered by the additional saving made in comparison to buying from April next year and this has caused an immediate uplift in buyer demand from foreign shores. Great news for developers who with stock currently, or due to hit the market in the coming months.”
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.