How will the stamp duty holiday benefit the Bexley Borough housing market?

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With inflation at an all-time high, interest rates going up, and the cost of living rapidly rising at the quickest rate in 40 years, it is a wonder whether now is the right time to buy a house.

According to the Office of National Statistics (ONS), the average UK house price went up by 15.5% over the year to July 2022. It was reported that this is the highest annual property price increase rate in the UK since 2003. The ONS attributes this mainly to the stamp duty holiday last year in 2021.

With this said, as of 23rd September 2022, the government introduced another stamp duty holiday in an attempt to boost activity in the housing market.
How has stamp duty changed?
First-time buyers do not need to pay stamp duty on the first £425,000 of a property purchase price, an increase on the original £300,000 threshold. Discounted stamp duty for first-time buyers will apply up to £625,000, an increase from the previous £500,000.

Other buyers will not need to pay stamp duty on properties of up to £250,000, a jump from the previous £125,000. This means that those buying a house of £600,000 will only be paying tax on £350,000 rather than on £475,000.

This is a bonus for people considering buying or selling their home since it means that fewer taxes will need to be paid out and in some cases, no tax at all depending on the purchase price.

Whether you are selling or buying a house, the stamp duty changes are bound to affect you positively, and here’s why:

What does this mean for sellers?

For sellers, the stamp duty holiday is a good opportunity to attract more buyers. Those selling homes in London areas such as Bexley and Sidcup will benefit from this the most as the average house prices are higher than the rest of England and it is said that 65% of stamp duty income comes from London and the South East.

In addition, first-time buyers in the London and South East areas will benefit from a big tax cut which may encourage them to take advantage of the tax holiday to step onto the property ladder. This may mean that sellers will have more available buyers, meaning more competition and potentially more offers. 

What does this mean for buyers?

For buyers, the stamp duty holiday is a unique chance to buy a property and save money on tax. This allows potential buyers to expand their horizons with their dream homes being a little more affordable than previously. They will be less restricted financially with more room to make higher offers on properties than they were able to before.

Alternatively, the money that they are saving on tax cuts can be used in other areas such as paying for fixtures, fittings, and furnishings or other costs that will lift the value of the house, such as installing a new kitchen for instance. This will be highly beneficial to buyers in the long term if they decide to sell in the future.

With this said, it is hard to predict how the house price rates will move, but according to the ONS, the last stamp duty holiday boosted the housing market, which means that the current holiday could potentially boost the value of houses further.

If you believe that now is a good time to make the most of the stamp duty holiday, whether you are buying or selling in Sidcup, Bexley, or surrounding areas, we can help you. 

So, if you are thinking of selling your Bexley Borough property in the coming months, don’t ask the agent out a few days before you want to put the property on the market, get them out now and ask them what you need to do to ensure you get maximum value in the shortest possible time. We, like most agents, will freely give that advice to you at no cost or commitment to you.

Call our team now on: 01322 559955 or pop into one of our offices:

Bexley: 

67 Bexley High Street, Bexley, Kent, DA5 1AA

Sidcup:

90 Sidcup High Street, Sidcup, Kent, DA14 6DS

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