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
How will the Bournemouth market be affected?
According to Zoopla, as at the end of July 2020, the average price paid for property in Bournemouth (over a 12-month period) is £304,736. With the stamp duty holiday in place, buyers will pay no SDLT on this property. This represents a saving of £5,236.80. This might not be a massive saving when you consider the size of deposit and mortgage required for the property, but equally, saving more than £5,000 up front is a significant saving for buyers.
Landlords might be motivated to buy additional property too
Also, while landlords and property investors are still required to pay the additional 3% SDLT when buying property, they too benefit from the stamp duty change. This means these buyers can also save money, perhaps presenting them with a better than expected rental yield. This might lead to a larger supply of rental property in and around Bournemouth.
Marc von Grundherr, a leading name in the property industry, said; “Breaking down the current property stock available on the market really gives us a good idea as to just how many people are due to benefit from the changes to stamp duty announced last week. The figures show that the vast majority of homebuyers will be better off as a result. Even in London, there will be a considerable saving for a vast number of those transacting across almost every borough.”
Marc continued by saying; “However, there is a chance that savvy home sellers who may have seen the value of their property slump due to the recent pandemic will now increase their asking price by that little bit extra. Our advice to homebuyers would be to know your market, stick to your guns when making an offer, and keep your stamp duty saving in your back pocket. You can use it as a bargaining chip should you need it further down the line when negotiating, but don’t be forced to over offer straight away.”