Chancellor Announces Immediate Boost to Housing Market

An increase in the stamp duty threshold is welcome news for the property market

Chancellor Announces Immediate Boost to Housing Market

The Chancellor’s Summer Economic Update introduces a temporary increase in the stamp duty threshold, offering an instant boost for the property market.  The measure announced this afternoon would see the point at which people have to start paying stamp duty rise from the current level of £125,000 to an increased threshold of £500,000 until 31 March 2021.

National house price indexes may report a drop in house prices during the first four months of 2020, as many face concerns over employment, particularly those on the furlough scheme.  However, Symonds & Sampson’s Estate Agents across Dorset, Somerset and Devon report a strong post lock-down market with prices holding firm.

‘All of our offices are experiencing a very high demand for property across the board’ comments Head of Agency, Jon Summers. ‘Applicant registrations, number of viewings, and sales agreed are at – if not exceeding last years’ figures, and on the rare occasions sales have fallen through, demand is such that generally new buyers were quickly found and sales agreed at much the same levels.’

He added ‘This announcement is a welcome stimulus for what is already a buoyant bounce-back market in the region, which comes hand in hand with benefits to the wider economy by improving job and social mobility in particular. The changes announced will be particularly welcome news to first-time buyers, the foundation of the property market and sector who are arguably the most nervous about job prospects, and where any assistance will particularly beneficial’.

As yet, there are no further detail  about Stamp Duty thresholds on additional homes or for homes above £500,00, although industry experts speculate that thresholds for these segments of the market will remain unchanged.

The £2billion 'Green Grant' announced will be a boost to all property owners, landlords and owner-occupiers alike, as they seek to improve the energy efficiency of their properties.  

 

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