Stamp Duty Holiday Had Biggest Impact In London

It is fair to say the stamp duty holiday affected some groups of property buyers more than others.

It is fair to say the stamp duty holiday affected some groups of property buyers more than others.

First-time buyers felt the holiday was of no great benefit to them. Also, buyers in many parts of the country felt there was no benefit to them, as properties in their area were already below the stamp duty holiday threshold.

However, buyers in London have benefited, and at Ariston Property, we have seen this for ourselves.

We are here for you in the North London housing market

Towards the end of January 2021, Rightmove said the following about the Archway housing market;

“Properties in Archway had an overall average price of £660,472 over the last year. The majority of sales in Archway during the last year were flats, selling for an average price of £458,310. Terraced properties sold for an average of £912,104, with semi-detached properties fetching £1,432,500.

Overall, sold prices in Archway over the last year were 8% up on the previous year and 5% up on the 2017 peak of £630,081.”

This is what Rightmove said about the Hornsey Rise market as of January 2021;

“Properties in Hornsey Rise had an overall average price of £676,007 over the last year.

The majority of sales in Hornsey Rise during the last year were flats, selling for an average price of £431,771. Terraced properties sold for an average of £963,289, with semi-detached properties fetching £1,365,000.

Overall, sold prices in Hornsey Rise over the last year were 13% up on the previous year and 4% up on the 2017 peak of £652,253.”

Recent research backs up the feeling buyers in London have benefitted.

The findings suggest 85% of property transactions since July 8^th have been below the £500,000 threshold. This means they are exempt from stamp duty for the duration of the holiday.

Affordability is a vital factor in housing market

Of course, homes that were affordable enough, or which were bought by first-time buyers would likely have been exempt from stamp duty anyway.

The findings indicate there have been stamp duty savings of £190m alone in the capital. 49% of London purchases completed below the £500,000 threshold, meaning no tax was paid.

By contrast, 99.7% of all residential transactions in Sunderland have been stamp duty exempt. This is because the homes were cheap enough to go below the main stamp duty threshold, or they were bought by first-time buyers.

The study found 147,969 transactions which would have been eligible for stamp duty without the holiday, but which were exempt as they concluded after July 8^th.

The agency said; “Before the stamp duty holiday, the 147,969 homebuyers would have paid £1.444 billion in stamp duty. Thanks to the reprieve in place, the stamp duty paid equates to £627.467m, a saving of £817.0m.”

Around £5.6m a day have been saved by buyers since the stamp duty holiday was introduced.

We know these are challenging times, but if you have any questions about the local property market, please feel free to contact us. At Ariston Property, we aim to support the local community as best we can, and we look forward to assisting you in any way. You can call us on 020 7272 9988.