As June has now drawn to a close we see the end to the higher bracket of the Stamp Duty holiday. In truth, due to the demand and solicitors increased workload, many have not managed to complete in time and are now coming to terms with having to pay the extra cost.
We were keen to advise clients many months ago, when agreeing a sale, that the price agreed may well come with the stamp duty having to be paid and it wasn’t agreed based on a June completion. This we believe has helped manage expectations and as a result we are fortunate that none of our sales have fallen through as a result of missing the deadline.
What savings can still be made
It’s not all bad news! There is still a form of Stamp Duty reprieve with the threshold for stamp duty currently sitting at £250,000 up until the 30th September. This means those who missed out on the June deadline will still be able to save 2%. Of course, FIRST TIME BUYERS are still exempt and with more low deposit mortgages available than in previous years, and upfront costs for a property purchase are still lower than we have seen over the past years despite rising property prices. This also has helped soften the cut off at the end of June.
Is this still a good time to sell?
The short answer is Yes. With the influx of properties to the market pre June and consequently the rush to buy and complete before the higher relief ended, we have seen record numbers of sales, but this has meant that many clients who have sold are now unable to find properties to buy, and are still actively searching. There is also a current low supply of new properties to the market, meanwhile the demand in the area remains strong. Furthermore, since lockdown buyer’s priorities have changed, people are working more flexibly, are able to look further afield and families especially often want more outside space. We are also at the point whereby families will be focusing on being in their new homes for when the schools go back after the summer holidays.
So, although the savings are smaller, we see it that the buyer’s priority is to actually find the right home and are happy to pay the Stamp Duty and factor this in long term when financing their purchase.
Ospreys Home search
We have been very pro-active treading the pavements and writing to property owners in the areas where we have retained clients looking. We have a large list of WANTED properties, for real buyers that still haven’t found their ideal home and who are willing to wait for the perfect property. For our sellers this means they can achieve a price they are happy with, to a buyer who is often willing to wait without having to rush the transaction.
Contact us for an informal chat and valuation and see if we could match yours in this way and then help you find your ideal home.