Estate agents predict return to normality in Chesterfield housing market as stamp duty holiday ends
The stamp duty holiday ends for some buyers tomorrow with estate agents predicting the market will return to “normal”.
Chancellor Rishi Sunak announced a stamp duty holiday last July, before extending it in March, providing a massive boost to the housing market amid fears of it collapsing due to the impact of the coronavirus pandemic.
However, now the holiday is coming to an end for some buyers.
It meant the threshold for stamp duty – the tax payable on property purchases – was raised from £125,000 to £500,000, which meant home-buyers paid no duty on the first £500,000 of the purchase price, as long as completion was by June 30, 2021.
From July 1, the threshold falls to £250,000, before returning to its pre-pandemic level of £125,000 at the end of September.
Property website Rightmove estimates 1.3 million buyers have benefited from the tax break, with the average asking price for a home rising almost £16,000 over the period – the average price in Chesterfield has risen 11.1 per cent in a year, from £156,491 to £173,885, according to the latest UK house price index.
Loss will not be catastrophic
While the holiday has boosted the market, its loss will not be catastrophic, according to estate agents, who say the desire to move is still strong as more of us seek extra space, gardens and a rural setting as a hangover from lengthy lockdowns.
Mat Barnes, sales and lettings director at Hunters, Chesterfield town centre, said: “Generally speaking, the market is still strong for the middle market, up to £300,000. However, over that it has started to stall somewhat, but is still active. But maybe we’ll see a return to ‘normal’ now.”
Gráinne Gilmore, property website Zoopla’s head of research, said: “The busy market is being driven by a once-in-a-generation re-assessment of home as a result of the pandemic. This has led thousands of households to reflect on how and where they want to live.”
Tim Bannister, Rightmove director of property data, said: “Over the past few months, the race for space has overtaken the race to beat the stamp-duty deadline.
“Activity is still strong despite this first phase of the holiday coming to an end in England, as prior to the extension being announced there was already a huge group of buyers deciding to move, regardless of the holiday.”