The property market in West Somerset has been particularly buoyant over the last year. According to Nationwide Building Society house prices in the UK rose by 13.4% in the year to June 2021. Our own conveyancing department has been busier that ever – processing 39.6% more transactions than last year.
The stamp duty holiday has clearly been a powerful stimulus to the property market. The spring was very busy with buyers racing to complete before the revised end of June deadline. With the holiday then extended to the end of September the frenzy has continued.
There have, of course, been other stimuli from the Covid pandemic. The move to home working has created the need for extra space. Many people have made the move to coastal and country properties. Even the extra availability of cash usually spent on travel or entertainment has had an effect.
What will happen on 30th September?
The stamp duty holiday ends on the 30th September 2021. From 1st of October rates will return to ‘normal’ levels with stamp duty payable on transactions over £125,000.00
Stamp Duty Rates from 1st October 2021
| Property or lease premium or transfer value | SDLT rate |
|---|---|
| Up to £125,000 | Zero |
| The next £125,000 (the portion from £125,001 to £250,000) | 2% |
| The next £675,000 (the portion from £250,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
Whilst the stamp duty holiday has undoubtedly stimulated the market there are still plenty of other factors that will remain after 1st October. The requirement for space for home working and desire to move to coast and country will remain. In addition there are other factors that have contributed to the strong market. Interest rates have remained at a historic low and government schemes supporting first time buyers have all helped.
All things considered it is likely that the property market, especially in West Somerset & Exmoor, will continue to be strong for some months to come. That said, if there’s one thing the pandemic has taught us, it’s that anything can happen!
Now, more than ever, it’s important to get the best legal advice. Whatever your query – residential or commercial property – please get in touch.
01643 703234 email enquiries@thornesegar.co.uk