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Stamp duty rates are being tapered back to full by the end of September 2021 in order to ease property buyers back in to a full price market after the stamp duty holiday ends on June 30th. Already extended from March 31st, the holiday was intended to keep the property market moving during the uncertainty of the pandemic.
The market has however seen some ups and downs. At the beginning of the first lockdown of March 2020, the housing market was closed. This meant a lot of homes were not selling and the property market was slowing down. A big spike then came in March 2021 as buyers and sellers rushed to complete deals ahead of the stamp duty holiday, planned to be expiring at the end of that month.
After this big rush, the stamp duty was extended to the end of summer. This could possibly have saved people up to £15,000, dependent on the value of the property they were buying. A lack of homes on the market then meant available homes were in high demand by many buyers. This inevitably put house prices up which led to increased borrowing.
While it will be interesting to see what happens to the market as stamp duty comes back in to effect, the housing market proved to be quite robust in 2020. Property prices were reaching record highs towards the end on the year despite the global pandemic. The UK deal on Brexit as well as the stamp duty holiday are likely to have had an effect on this.
The Office for National Statistics said that there was a new record high of the average house price rising by £24,000 to £256,000. According to the BBC and official figures, average UK house prices have soared by 10.2% in the year 2021 to March, while flats and maisonettes went up just 5.0% over this period. This has been affected by a range of the stamp duty reduction, low interest rates and people wanting more space after lockdown. With the sharp rises in house prices, this is creating huge problems for first time buyers. With all the hope of vaccinations, government help schemes and low mortgage rates, the housing may weather the financial storm caused by coronavirus.
With all of the above effecting the property market, a bridging loan could help. This is a short-term finance option to buying a property. It bridges the financial gap between the sale of your old property and the purchase of your new property. A bridging loan can help if you are struggling to find a buyer for your old home. This will help you move into your next home before you have sold your current one.
If you are looking to purchase a property or land, Saffron can offer a wide range of deals or quotes with many lenders on our panel. We would be happy to help if you wish to get in contact with one of our team members on 01925 594 455.