It’s that time of the week where we bring you a round-up of the head-turning headlines that caught our attention and this week the main one that had our head on a swivel was the Chancellors announcement of a Stamp Duty Holiday up to £500,000 until March 31st 2021, which is excellent news for the property market.
What does this mean for investors? The 3% surcharge will still apply to investors and 2nd home purchasers, however, the extra stamp duty you would usually pay up to £500,000 is waivered saving money on purchases over £125,000.
For example, if you purchased a property for £250,000 without the stamp duty holiday then the stamp duty would be £10,000. The breakdown demonstrated below:
According to estate agent Barrows and Forrester, there will be an average saving of £2,465 on purchases in England and it seems that London is set to save much more due to the higher prices with the average London stamp duty savings being £14,290. This could be the catalyst the London property market has been waiting for.
This is sure to boost property market activity and there are already reports of a surge in enquiries for buying and selling. The UK government has recognised that the property market is such an important cog in the economy and this is a sure-fire way of them keeping it moving.
Well, that is the main property news that has taken much of our attention so now onto the rest of the news that may have been overshadowed by the Chancellors announcement.
- BTL landlords will benefit from £2bn home insulation scheme – Due to the SDLT announcement, this new incentive which will see homeowners receive vouchers of up to £5,000 (with the poorest getting up to £10,000) has largely been swept aside and gone unnoticed by many even though it was announced at the same time. This is good news for landlords and investors of older properties as from September ‘homeowners and landlords can apply for vouchers to help to fund energy-saving home improvements, an amount which the chancellor estimates will cover up to two-thirds of costs per household’. This is worth looking into if you think your property would benefit.
- Rise in UK construction output indicates ‘sector’s increasing health’ – June has seen a sharp turnaround in the performance of the UK construction sector due to the phased restart of work on sites. Housebuilders accounted for the bulk of the uplift in construction after the PMI construction survey found that 46% of firms reported an increase in business. New orders stabilised and purchasing activity expanded at the fastest rate since 2015. This is very promising to see and it looks set to continue which will further boost the economy.
- Rightmove records busiest day ever as demand surges – There is no surprise when reading this headline as this was the desired effect of the Chancellors SDLT holiday. Following the announcement, Rightmove attracted 8.5 million visits which surpassed the 7.7 million record that was set the previous day. Rightmove also recorded the number of people phoning and emailing estate agents about property for sale hit a new record on Wednesday, up 1% on the previous record set on 11th June. This surge in demand is set to continue and it will be interesting to see what part this will play on property prices, especially in areas that have had slower growth due to the higher property values.
- What property pros are saying about the impact of COVID-19 – This is a good insight into how other property professionals are viewing the market and effects of the current pandemic. At Track Capital we are always liaising with industry professionals from all parts of the property sector which helps us form a great overall perspective of the market so this article is a great read if you would like to catch a glimpse of what others are experiencing.
In light of the SDLT holiday announcement, we thought it would be great to leave you with a handy tool to enable you to easily see how much stamp duty you would have to pay on a property purchase. This SDLT Calculator is via the gov website and easy to use.
That’s it for this week, get in touch with the team anytime to discuss your UK property investment plans through [email protected] or on +44(0)203 627 3987.
Team Track Capital