Cutting Through The Jargon - September House Price Index & Stamp Duty Cuts
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30Sep
On Friday, 23rd September, the Chancellor of the Exchequer announced his mini-budget, revealing permanent cuts to Stamp Duty, affecting all home buyers.
Rightmove has also published its most recent House Price Index for September, outlining the latest movement within the property market. Read on to find out more about what this means for buyers and sellers across the region.
Buyers
The Stamp Duty threshold has now been permanently raised from £125,000 to £250,000, potentially saving buyers up to £2,500 on their purchase. First-time buyers can also now purchase a home worth up to £625,000 and not pay any Stamp Duty on the first £425,000. This cut now means that 66% of homes in England are exempt from Stamp Duty to first-time buyers, and 33% of homes are exempt for all buyers. If you were already planning on making a move, the cuts to Stamp Duty could give you the extra helping hand you need to decide on your purchase.
Buyers
The Stamp Duty threshold has now been permanently raised from £125,000 to £250,000, potentially saving buyers up to £2,500 on their purchase. First-time buyers can also now purchase a home worth up to £625,000 and not pay any Stamp Duty on the first £425,000. This cut now means that 66% of homes in England are exempt from Stamp Duty to first-time buyers, and 33% of homes are exempt for all buyers. If you were already planning on making a move, the cuts to Stamp Duty could give you the extra helping hand you need to decide on your purchase.
Throughout the last month, Rightmove is also reporting an increase in stock levels with the number of properties coming to market returning to similar levels of 2019. This means that there is now more choice for buyers looking to purchase their first, or next, property.
Several news outlets have begun to report lenders suspending mortgage deals for new customers over the last week; however, this is not a reason to panic! The lenders in question, including Skipton Building Society and Virgin Money, have already announced they are preparing to reveal a new line of mortgage products for customers over the next couple of weeks which will be balanced in line with the Bank of England’s new interest rates and the market conditions resulting from the mini-budget. If you are already in the process of making an application with one of these lenders, you will not be affected by the halt in sales.
Sellers
National average house prices have risen again this month, up 0.7% on August’s figures as the average house price has reached £367,760 with price growth being driven by demand from buyers searching for their next home in the middle and higher end of the market. Buyers searching within this area of the market are often taking their second step on the property ladder, often looking for detached properties with at least three bedrooms and semi-detached properties with four bedrooms.
Mark Ross, Managing Director at Redbrik said: “Following the cuts made to Stamp Duty, we are expecting to see a further rise in demand for properties across our region, particularly from buyers interested in taking their second step onto the ladder. Figures from Rightmove show us that demand in this sector is up by 2% compared to last year.
“If you are looking to sell your home, the market is now presenting a perfect opportunity to achieve a fantastic price for your property whilst potentially saving thousands on your onward purchase.”
Looking at the market as a whole, buyers are still showing motivation to move, whether they are interested in purchasing a property with more outdoor space, additional bedrooms, or office space.
So if you are considering selling your property, don’t worry- there is still plenty of demand for homes across the region! Despite recent economic pressure, buyer demand is still up 20% on the five-year average, with the announced Stamp Duty cuts expected to give a further boost to buyer demand. During this month’s house price index, Rightmove has also revealed figures on the percentage of demand from first-time buyers stating that demand has fallen by 8% since last year. However, this year-on-year fall should not be too concerning to sellers as the total demand is still sitting at 27% higher than that of the pre-pandemic years between 2015 and 2019.
For more information on the recent Stamp Duty cuts and how they can benefit
you for your onward purchase, get in touch with your local Redbrik office.