Saffron Walden estate agent welcomes Chancellor’s temporary stamp duty freeze
PUBLISHED: 14:46 09 July 2020
A Saffron Walden estate agent has welcomed the Chancellor Rishi Sunak’s announcement yesterday (Wednesday) of a temporary stamp duty freeze, helping buyers.
The first £500,000 of all property sales in England and Northern Ireland will no longer be subject to stamp duty with immediate effect until March 2021.
And the savings could potentially also boost businesses as it could lead home buyers to upgrade kitchens, bathrooms and gardens.
Bruce King of Cheffins said: “Whilst the market has already been significantly busy post-lockdown, cutting stamp duty on purchases up to £500,000 really will be the catalyst to get the industry flying.
“The most likely impact of this measure will be a flood of buyers coming into the market who previously had sat on their hands due to political and economic uncertainty, and this flurry of activity will bring with it price rises as demand outweighs supply.
“However, it will also be a stimulant for those considering selling as people look to make the most of a buoyant market during the tax holiday.
“Whilst the virus certainly will have had a long-lasting effect on the property market, it has also meant that many people’s situations have changed and with diminishing pressure to work five days a week from the office, new working hours and other varying priorities, this stamp duty reduction will provide the additional push for many to take the plunge and get on with house moves.
“As most lenders are now asking for a 15 percent deposit, the money which would have been spent on stamp duty can now be put against the deposit, freeing up some cash and allowing many, particularly first time buyers, to get closer to owning a home.
“And it is not only the lower end of the market which will feel the knock-on effects of reducing stamp duty, even for those buying at over £1 million, there will be significant savings, allowing upsizers to consider properties which perhaps previously were out of reach.
“In addition, this could have a trickledown effect on the larger economy as buyers have additional money to spend in order to ‘renovate, move and improve’ as the Chancellor said himself. “
Mr King said that contrary to some reports, property values had not reduced, but some buyers had renegotiated deals.
He said June had been the busiest month on record, and prices have managed to hold firm as bottle-necks of supply have led to competition between buyers.
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