Understanding Competition In West Hampstead Housing Market
30th September 2020 posted in Sellers Buyers
It is fair to say the stamp duty holiday has significantly impacted the demand for homes in London, including West Hampstead. With the chance to save around £15,000 on stamp duty fees, it is inevitable that buyers are looking to snap up property while they can.
With the UK currently in recession, there are concerns for the longer-term future of the economy, and people’s finances. A lot of people will struggle, but there will be further opportunities for people who are more confident about their finances.
There will also be increased competition from overseas investors, and there is a combination of factors which sees foreign investors looking at the market with serious intent right now.
When you consider the Government intends to implement a 2% surcharge for overseas property buyers from April 2021, this will see international buyers paying a lot more for London homes.
Buyers can save considerable sums of money now
Therefore, many are deciding it is better to act now and save a considerable sum of money. Research has been compiled by a London agent to suggest a saving of around £24,000 is on offer to foreign buyers who act before the stamp duty holiday, and new surcharge comes into effect.
As of September 2020, Zoopla states the average price paid for property in West Hampstead (in the last 12 months) stands at £878,390. With the stamp duty holiday in place, a property buyer at this price will pay £18,919.50 in stamp duty.
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However, when the stamp duty holiday is over, the buyer will pay £33,919.50 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 West Hampstead, this will add around £17,500 to the overall cost of buying a home.
Therefore, a foreign investor buying at the average price of West Hampstead property before the stamp duty holiday closes has to pay around £19,000 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 more than £50,000 in fees.
Emre Bilgin is a Director of PSS London, and he said; “After almost four years of Brexit-related uncertainty, many buyers and sellers are fed up of sitting on the fence. Lots of them are already near to closing deals and securing opportunities. It is still going to be a time-consuming process, but the motivation is there.”
Emre also said; “Despite all the difficulties of the past few months, we at PSS London are coming out of this period with a positive outlook. For overseas investors, London’s fundamentals are as strong as they always have been, whether it’s the education system, the rule of law or even the open green spaces across the capital. There has never been a better time for buyers and their agents to search for new opportunities.”
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 West Hampstead today for all your housing and letting needs.