Research has been compiled by a leading agent which suggests 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.
It isn’t just high-end foreign property buyers who can benefit from acting quickly. There is a growing awareness that foreign investors are now looking further across London in the hope of finding great value. It used to be that these investors would only focus on high-end property, in and around Central London. This is no longer the case, and many parts of the English capital are welcoming buyers from other countries.
As of September 2020, Zoopla states the average price paid for property in Forest Hill (in the last 12 months) stands at £547,125. With the stamp duty holiday in place, a property buyer at this price will only pay £2,535 in stamp duty.
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However, when the stamp duty holiday is over, the buyer will pay £17,356.25 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 Forest Hill, this will add £10,000 to the overall cost of buying a home.
Therefore, a foreign investor buying at the average price of Forest Hill property before the stamp duty holiday closes has to pay an additional £2,535 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 £27,000 in fees.
It should be obvious why there will be heightened demand for property in Forest Hill, and all of London, in the next few months.
Many parts of London are benefiting
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.”
At Hunters Forest Hill, we know selling property is challenging, but we are here to assist you in the process. If you aim to buy, sell, let your home or rent property, we are active in New Cross, Peckham, Dulwich and Brockley, in addition to Forest Hill, so get in touch with one of the top three agents in London, and we will be happy to assist you.