How has the Stamp Duty Holiday affected the Housing Market?

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    Investment opportunities in property:

    The government’s stamp duty holiday is now in full swing. Many owner-occupiers are taking advantage of it to move home and investors are already benefiting from the property investment opportunities it has brought.

    But what affect has it actually made on the property market as a whole? We’ve taken a look at what impact the stamp duty holiday has had on England and Northern Ireland’s housing markets.

     

    Recovery scheme

    The stamp duty holiday was implemented in July to help the property market recover after the nationwide coronavirus lockdown. Chancellor Rishi Sunak’s scheme means any property purchases up to £500,000 will be free of stamp duty land tax (SDLT) until 31st March 2021.

    Although overseas investors and purchasers of second homes and buy-to-lets will still have to pay the current 3% SDLT surcharge, it nevertheless creates huge property investment opportunities. Such purchases of a property worth £499,999 will now save almost £15,000 on SDLT.

     

    Increased demand

    Since the stamp duty holiday was announced, property professionals across England and Northern Ireland have seen increased demand. Particularly from home-movers.

    Estate agents Countrywide reported a 38% increase in buyers since the announcement, while 75% of surveyors saw an increase in enquiries in July.

    People are now also moving home more quickly. The share of owners putting their houses on the market has increased significantly compared to last year. Yorkshire had one of the biggest changes in England.

    So many houses being put on the market means a greater variety of property investment opportunities for people interested in starting or expanding their portfolios.

     

    Perfect timing

    One of the reasons for this sudden impact is the timing of the stamp duty holiday. After months of being confined to their own houses, people are keen to move to bigger properties with more outdoor space and places to work.

    Lucian Cook, head of residential research at Savills, explained.“The market is currently being driven by those with the security in their household finances to be able to act on the lifestyle changes and desire for more space that the experience of the lockdown has brought about.”

     

    Growing property prices

    Another impact of the stamp duty holiday is the growth in property prices. The scheme launched in July, leading to an incline in house prices. This resulted in a jump that was higher than any since August 2009. They increased by 1.7% month-on-month and 1.5% annually.

     

    Investment opportunities in property set to last

    The property market was already beginning to recover immediately after the easing of lockdown restrictions in May. The stamp duty holiday has given it a definite boost in the months that have followed.

    Property experts predict the positive impacts will last into at least the autumn, with the rest of the year and early 2021 yet to be seen.

     

    Contact us- investment opportunities in property

    Now is the perfect time to take full advantage of the property investment opportunities created by the stamp duty holiday. Don’t miss out on the chance to save thousands of pounds on a property investment. Contact North Property Group today to find out more.

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    Manchester: +44 (0) 161 2449 060

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