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Chelmsford: Impact Of Stamp Duty Changes

November 6th 2020
By: Intercounty
Chelmsford: Impact Of Stamp Duty Changes

It is fair to say the stamp duty holiday has impacted many people across the country. The chance to make a significant saving when buying a home is appealing, and this is the case in Chelmsford as it is anywhere else.

At Intercounty, we have worked closely with buyers and vendors of late. There is activity in the market and many people have pressing questions about whether they should move or not.

If you need assistance in deciding if the stamp duty holiday should encourage you to move, we are here to help you.

Stamp duty holiday is a temporary measure

On Wednesday 8th July, the Chancellor of the Exchequer, Rishi Sunak, announced an increase in the stamp duty threshold in the Summer Update. The critical points of the stamp duty changes are:

  • Stamp duty threshold is now £500,000

  • This increase in stamp duty threshold is set to run until 31st March 2021

  • The increase in stamp duty threshold takes place immediately

There is time before the stamp duty holiday deadline, but we advise you to act sooner rather than later. You should accept things are moving slower at the moment, including mortgage applications. By starting the process sooner rather than later, you give yourself as much leeway as you can.

Chelmsford house prices and stamp duty changes

According to Zoopla, as of the start of September 2020, the average price paid for property in Chelmsford in the past 12 months is £379,550 This is currently below the stamp duty threshold, so there is no stamp duty due on a property at this price in Chelmsford as long as the deal concludes before April 2021.

Before the stamp duty change, a home buyer would have faced a stamp duty bill of £8,977.50 when buying a property at this price. A first-time buyer would have faced a stamp duty bill of £3,977.50.

Given the cost of buying a home, anything which lowers the overall cost of buying property is worth exploring. Therefore, there is an incentive for homebuyers to conclude the deal before the stamp duty holiday deadline expires.

While there has been considerable focus on the positive impact on buyers, the stamp duty holiday should also provide vendors with greater confidence. As the Office for Budget Responsibility, the OBR, expects an additional 100,000 property sales to occur because of the stamp duty holiday, this is something that should capture the attention of all vendors and alike.

Any Chelmsford homeowner who is looking to sell their home should contact us. At Intercounty, we are more than happy to provide you with a property valuation. A valuation helps you connect with buyers, and it provides a platform for your next move.

For all sales enquiries in Chelmsford, please feel free to call us on 01245 251442 or why not email us at chelmsford@intercounty.co.uk. With considerable experience in the local housing market, and free valuation services, we look forward to helping you make an informed decision in the Chelmsford property sector