What does the stamp duty holiday mean for the housing market in Newham?
PUBLISHED: 17:00 14 July 2020 | UPDATED: 18:13 14 July 2020
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The stamp duty holiday could save Newham buyers thousands of pounds, according to local estate agents.
Chancellor Rishi Sunak announced this much-anticipated holiday as part of a raft of measures designed to stimulate the economy.
The threshold for stamp duty has been raised from £125,000 to £500,000 until March 31 next year.
With the average house price in the borough between £400,000 and £500,000, this increase means that buyers will not pay any stamp duty on purchases within this price range for the duration of the holiday.
Mr Sunak said the average stamp duty bill will drop by £4,500 as a result, with nearly nine out of 10 people buying their main home this financial year now set to pay nothing at all.
Previously, the duty payable for residential property stood at 2 per cent on homes priced between £125,000-£250,000, 5 per cent on £250,001-£925,000, 10 per cent on £925,001-£1.5m and 12 per cent on the portion above £1.5m.
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Discounts were already in place for first-time buyers up to £300,000, as well as a 3 per cent surcharge for second home buyers, which remains unchanged.
In Newham, savings are likely to be significantly more than £4,500 given the average house price in the borough.
However, it should be noted that a duty of 5 pc does remain in place for properties valued between £500,000 and £925,000, with increases to 10 and 12 pc respectively for homes of greater value.
Mario Trattou, branch manager of Your Move in Forest Gate said the announcement was “definitely a positive move” in terms of helping people onto the property ladder.
The manager added that Newham buyers are highly likely to be advantaged considering the average house will now fall under the new £500,000 threshold.
However, it will take time — around three months, Mario thinks — to see the full benefit of this holiday.
Scott Lewis from Bairstow Eves said his agency has already noticed a shift: “We are seeing an uplift in the area. This holiday is giving buyers and sellers greater confidence.”
A senior negotiator at the Stratford branch, Scott has worked in Newham for 16 years, describing it as an area he “really believes in”.
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