Trailer for new episode of 'The Property Show' podcast
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
The stamp duty holiday threshold was reduced on June 30 after the property tax break began in July 2020. Following this, the threshold dropped to £250,000 and will remain in place until September 30. On the October 1, it will return to the previous level of £125,000.
The stamp duty holiday has helped create a massive boom in the property market which has in turn seen house prices increase.
On the latest episode of The Property Show podcast, Andrew ‘Monty’ Montlake and Louisa Fletcher discussed what can impact your credit rating and what’s nest for the UK housing market now that the stamp duty holiday is over.
Monty also shared what you can do to improve your credit rating and shared his pick of the latest mortgage products.
Louisa, a property expert for Express.co.uk, said the there are a couple of months of “taper relief” on stamp duty which is “quite important”.
She explained further: “Where this now sits is the first £250,000 of your purchase is exempt from paying stamp duty in the vast majority of cases.
“That’s a saving of £2,500. But the interesting thing here is that if you look at last year, approximately 45 percent of all residential properties that were sold last year were valued at £250,000 or less.
“So although it doesn’t sound like a big tax break overall – or at least not as big as the one we’ve just had – it will still benefit a large number of people who are yet to move.
“When you look at it in that context there’s actually still quite a lot of life left in it.”
Some experts predicted that the tapering of the property tax holiday would lead to a dip in the market.
Kate Middleton body language ‘shifts’ at Wimbledon with dad Michael [INSIGHT]
‘Smells amazing’ Mrs Hinch fans share methods to clean washing machine [UPDATE]
House prices 2021: How has the property market changed this month? [ANALYSIS]
However, Louisa has predicted that current market conditions are likely to continue.
She continued: “My view – looking at what’s going on now and all the figures and numbers and everything that I see – I think where we are now is likely to continue for a good two or three months yet.
“That’s simply based on the fact there’s still enough property available to meet demand at pretty much all price points.
“It leads to this cyclical issue which is if you’re thinking about moving home, let’s face it, the first thing you’re going to do is probably go online, go onto a property search website and see what’s available.
“If there isn’t much available then the logical conclusion will be: ‘there isn’t really anything I want to buy so if there’s nothing I want to buy, what’s the point in selling?’
“This is what we’ve seen for the past few months.
“A lack of homes available to purchase perpetuates.”
Until more sellers come to the market, lack of stock will continue to be an issue within the property market.
The property expert said unless there are more sellers, it will continue to be a “seller’s market” where asking prices will continue to be met and there will be competitive bidding for the properties that are more popular.
“This where we’ve been for the past two or three months,” she said.
However, Monty explained that the stamp duty holiday is not the “sole cause” of the recent spike in property demand.
“It’s part of it, and it’s fuelled the fire, so to speak, but the fire was already there,” he added.
Monty said other factors that have led to the recent surge in property demand is there not being enough homes on the market and people are looking to move for a “new set of reasons” brought on by the pandemic.
The coronavirus pandemic has led to more people working from home rather than commuting to cities and offices.
Buyers are now requiring more space such as an extra room to get more out of their homes.
Outdoor space has also become more important as lockdown saw many confined to their homes.
Source: Read Full Article