In the aftermath of the Autumn Statement, most of the focus fell on changes to Stamp Duty for additional property purchases. A lot of the talk focused on how this would impact landlords looking to expand their property, and in turn, how this would affect the rental market.
However, there are other factors arising from the Autumn Statement. As you’d expect, David Harris & Co is on hand to assist you, and we’ll take you through the issues that matter.
Specific rate changes mean that the amount of money many buyers pay will change:
· 2% stamp duty rate will be reintroduced for property sales between £125,000 and £250,000
· Stamp duty will be up to £2,500 or one per cent of property value in this price range
· For an 'average home' priced at £300,000, stamp duty will double to £5,000
Even if you own a property, the presence of first-time buyers’ matter, so everyone involved with the housing market needs to see new buyers coming to the market. However, there are some changes coming to first-time buyers, and this will have a knock-on effect:
· First-time buyer relief will reduce from £425,000 to £300,000
· An additional 20% of first-time buyers will become liable to pay stamp duty
· 40% of first-time buyers will now pay full or partial stamp duty
Analysis from Zoopla, a leading property portal in the United Kingdom, suggests 83% of property buyers will pay a higher level of stamp duty from April next year.
Richard Donnell is the Executive Director at Zoopla and he has spoken about the situation, saying: “The growing complexity of SDLT makes assessing its impact on market activity and pricing increasingly difficult. Whilst an additional stamp duty payment of £2,500 might be more manageable for those purchasing £1m homes, it's a much bigger cost for those buying cheaper homes.”
Richard concluded by saying: “Faced with this higher cost, home buyers will want it reflected in the price they pay for their home and will seek to make offers, keeping prices rises in check over 2025 and into 2026. These changes are likely to take 0.5 to 1 per cent off house price growth in 2025 hitting buyers in higher value markets and re-enforcing a north-south divide for price growth.”
You have to think this will impact the market. There is an expectation that landlords will buy fewer homes, which will lower overall demand, and activity in the market. In some ways, this might be positive, resulting in less competition for owner-occupiers, but if the overall cost of buying a home rises, there will be some people missing out.
There will be buyers who downsize their expectations, who might have to look for homes in more affordable areas, and there will be some buyers who cannot afford to make the move they wish to make.
Property moves will still happen, at all levels of the market, but there is added pressure for many buyers. We’ll help you navigate the market, no matter what move you wish to make.
We have assisted many Finchley homeowners looking to sell property, and we know what buyers are looking for when searching for a new home. You can take the stress out of connecting with likely buyers by turning to a local estate agent in Finchley.
If you want to make an informed decision in and around Finchley’s property market, we are here for you. If you have any questions about the local housing market, or you need assistance, please contact David Harris & Co today. Call us on 0208 346 9122.
