Property News: Stamp Duty

Local property expert Andrew Cardwell, the managing director of award winning Cardwells estate agents, shares some of the latest property news…

“I hope you are all enjoying the Summer and are getting to spend a little more time with family and friends as restrictions are eased. As you may know, during the pandemic a Stamp Duty Tax holiday was introduced, which meant that buyers didn’t have to pay any stamp duty land tax on the first £500k of their home purchase. This scheme changed on July 1st 2021. You may not, however, be entirely sure of what the changes are and how they will affect buyers as we progress through 2021 and beyond.
Now, the £500k relief has been reduced down to £250k and the following rates apply until September 30th 2021:

£0 to £250,000 = 0%
£250,001 to £925,000 = 5%
£925,001 to £1,500,000 = 10%
£1,500,000 and over = 12%

Importantly, this means there is still time to take advantage of the nil stamp duty charge as long as the purchase is complete prior to the end of September and the price is less than £250k.

From October 1st onwards, stamp duty rates will return to their pre-July 2020 levels, which means the nil rate band will drop back down:
to £125,000:
£0 to £125,000 = 0%
£125,001 to £250,000 = 2%
£250,001 to £925,000 = 5%
£925,000 to £1,500,000 = 10%
£1,500,000 and over = 12%

These rates only apply for people buying a new main residence home. A 3% premium to each of the bandings applies to purchases of additional residential properties, such as a Buy To Let investment properties. Although the stamp duty incentive is ending, the overall property market remains strong. We are in a period of the lowest interest rates that I have ever experienced, which means that cost of borrowing money, typically for a mortgage, is comparatively cheap in relation to previous years. Additionally, there are mortgages available which only require a 5% deposit. Quite recently the minimum deposit requirements have been upwards of 10%. So perhaps making that step onto the property is more affordable now. Even beyond October there are no stamp duty charges for properties less than £125k anyway.

I expect the property market in Bury to remain strong well past the 30th September 2021 Stamp Duty deadline and Cardwells are here to help you every step of the way. If you are looking to sell or let a property, or would like to let us know what the property specifications that you are looking for, please give my colleagues & I a call on 0161 761 1215, or maybe pop in and say hello. We are in the town centre on Market Street, Bury. Sending my very best wishes to you all.”

By Andrew Cardwell

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