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Follow on Google News | Will the End of the Stamp Duty Holiday Hamper Recovery?The Stamp Duty holiday, which means buyers don’t have to pay stamp tax if the property they purchase is under £175,000, will be over at the end of this year.
By: Winkworth Press Office Although the freeze on Stamp Duty did little to help the London market, where the average home costs well above the £175,000 band, it has helped buyers in other regions of the UK for whom the additional cost presented an obstacle. Martin Thomson, Manager of Winkworth Sleaford says: ‘We saw a good increase in business after the Stamp Duty holiday announcement. You can buy a four bedroom family home in Lincolnshire for £175,000, so Stamp Duty exemption for properties under £175,000 helps a large number of home buyers in this area. At the moment, I have buyers agreeing to buy property, as long as the sale goes through before Christmas, in order to avoid Stamp Duty.’ The end of the Stamp Duty holiday could have a negative impact in areas such as Lincolnshire, where prices are stable but not yet rising and recovery is six months behind the London market. Where average prices are below the £175,000 mark, the removal of the Stamp Duty holiday could result in a dip in activity. Other buyers who could potentially be affected by the reintroduction of Stamp Duty are first time buyers. The additional 1% transaction cost is still a major factor for this group of buyers who are already struggling to come up with the funds now required for a deposit. Figures from the Winkworth website show that around half, and more, properties on the market with Winkworth offices in Cambridgeshire, Lincolnshire, Nottinghamshire and Yorkshire are priced under £175,000. However, in Yorkshire, where 74% of Winkworth properties on the market are under the £175,000 cut-off point, the freezing of Stamp Duty back in September 2008 only made a difference to the £150,000-£175,000 range market. Properties under £150,000 in this area constitutes 65% of all properties – meaning a large portion of the Yorkshire market will be unaffected by the reintroduction of Stamp Duty for properties over £120,000. In comparison, Winkworth offices in London have a very low percentage of properties on the market under the £175,000 limit – in central London there are none at all. This signals that the change to the Stamp Duty periphery will have little effect on the London property market. More information: End
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