Homebuyers rushed online to find their next home within half an hour of the chancellor’s immediate tax cut.
Rightmove reported a 22 percent jump in traffic to its site within 30 minutes of Rishi Sunak confirming the cut in his mini budget today. The property search website said the discount would save up to £ 15,000 in some regions of the country.
Before the chancellor was widely tipped to make the stamp duty announcement, Rightmove analyzed the places where the biggest cuts would take place. These include Dorking in Surrey, Lymington in Hampshire and Sunbury-On-Thames, also in Surrey.
Stamp Rights Savings in the East of the Country: This five bed detached house in Milton Ernest, Bedfordshire is for sale for £ 475,000 through Urban & Rural estate agents
The biggest savings are in London and the South East, where values tend to be higher.
Following Chancellor’s summer statement today – confirming that the initial stamp duty threshold would be raised from £ 125,000 to £ 500,000 – Rightmove released a new analysis showing how much can be saved on the average home price in each region of the country.
For example, anyone buying a typical £ 363,066 home in the East of England would save £ 8,153.
Stamp Rights Savings in West Sussex: This detached four bed home for sale in Pulborough is on sale for £ 475,000 through Henry Adams brokers
The biggest savings are in London and the South East, where values tend to be higher. The average price of a home in the South East is £ 419,595, which would save £ 10,980 due to the eight month stamp duty holiday announced by the Chancellor.
The biggest savings would be in London at £ 15,000 based on an average home price of £ 628,284. In contrast, the region with the lowest savings of £ 646 is the Northeast, where the average home value is £ 157,291.
The region with the biggest savings is London where prices tend to be higher: this three-bedroom flat in Sydenham retails for £ 495,000 through Pedder brokers
Miles Shipside of Rightmove said, “This temporary vacation is likely to spark an even bigger wave of activity, at a time when record demand is already on as people rush to close deals at current asking prices.
“We could see upward price pressures on homes under £ 500,000, plus some sellers who choose to market their home with just over £ 500,000 so they can be sure that the buyer is not paying stamp duty.
Regional savings vary widely and it is most beneficial to those in more expensive areas. The great thing is that there is no delay, so that people can immediately proceed with their transactions. ‘
Stamp Rights Savings in the South West: This four-bed semi-detached house in Cirencester, Gloucestershire is on the market for £ 485,000, via Cain & Fuller broker
The chancellor was widely expected to announce the decrease in stamp duties today, but he did not expect to implement it until the fall.
This led to criticism that such a slowdown would bring the property market to a halt, as buyers would postpone their purchases until they could take advantage of the reduction in stamp duties later in the year.
As expected, the chancellor said the changes would apply immediately to anyone who buys his main house. The scheme also lasts more than eight months, with the new thresholds valid until March 31 next year.
Alasdair Dunne, of the national real estate firm Fisher German, said: “The chancellor has clearly listened to the industry and decided to introduce stamp duty immediately and that is very good indeed. A slowdown would only have brought a market to a halt that is beginning to show very strong signs of revival.
Clearly there is concern that the revival will end in late March, and by then the full economic impact of Covid-19 will be more apparent, but he can only deal the hand he has and this is a welcome move. ‘
|Region||Gem Price Jun 20||Stamp tax savings|
|North East||£ 157,291||£ 646|
|Yorkshire and The Humber||£ 202,502||£ 1,550|
|North West||£ 206,909||£ 1,638|
|East Midlands||£ 236,110||£ 2,222|
|West Midlands||£ 238,123||£ 2,262|
|South West||£ 321,996||£ 6,100|
|East of England||£ 363,066||£ 8,153|
|South East||£ 419,595||£ 10,980|
|London||£ 628,284||£ 15,000|