9th July 2020
How the Stamp Duty ‘holiday’ will affect the Chester property market
The government made a welcome announcement yesterday for property buyers to put a temporary holiday on Stamp Duty Land Tax (SDLT) until the end of March up to the first £500,000 of a property’s value with a view to boost demand. Buyers and sellers are now in a great position to move transactions through swiftly in order to take advantage of this significant saving.
Prior to the government’s announcement, only the first £125,000 of a property’s value in England and Northern Ireland is stamp duty free if it’s your main residence, or for first-time buyers it’s the first £300,000 of a property’s value if it costs under £500,000.
Matthews has seen positive signs of the market’s recovery since the lockdown, mainly due to pent-up demand. Now, following the Stamp Duty holiday, it is expected to pick up even further.
Alex Horne, Senior Valuer at Matthews comments: “The Chancellor’s announcement will act as a large incentive to keep all parts of the housing market moving during these critical summer months. Even though first-time buyers don’t need to pay stamp duty on purchases up to £300,000, they are likely to benefit from an increasing number of listings coming to the market from sellers who may want to take advantage of the Stamp Duty holiday for their onward purchase.”
According to Rightmove, properties in Chester had an overall average price of £244,570 over the last year, so the Stamp Duty holiday could mean an average saving of £1,638.
Although the measure is only temporary, we are confident that it will have a lasting impact on people who are looking to buy homes – particularly at the lower end of the market.
To find out more information about how the Stamp Duty holiday affects your property purchase in Chester, contact Matthews sales team.