Some really positive news for the UK property market was shared in early July when the Chancellor announced a temporary holiday on Stamp Duty Land Tax (SDLT) if the amount you pay for your main home is under £500,000.
This is now in effect and will continue until 31st March 2021 and is especially positive for the Wirral and Cheshire West markets as 93% of properties listed on Rightmove in July were below £500,000 and could be exempt from any SDLT payment if buyers meet the criteria.
Stamp Duty changes are also relevant for Buy-to-let/second home rates, although the 3% surcharge is still due on each band. Consequently, we have seen a considerable spike in the number of buy-to-let landlords and investors registering with us recently as they look to take advantage of the temporary window.
The market has responded extremely well to the SDLT initiative, seeing a 14% growth in new instructions and a 10% rise in sales agreed on Rightmove from June to July. This sustained period of recovery in the market is really encouraging amid nationwide financial uncertainty, while the fair balance between buyers and sellers will prevent any major fluctuations in property value.
Despite the continued upturn in the residential sales environment, the Wirral and Cheshire West lettings market has seen an unusually low number of new instructions since re-opening. Despite registered record volumes of potential tenants since May, new instructions on Rightmove are down 28% on July 2019 highlighting a real need for fresh stock in the market.
It is still uncertain as to how sustainable the current market conditions are as we head towards Autumn, however the recovery since lockdown has been extremely encouraging and provided a much-needed boost to the housing market in Wirral and Cheshire West.
To be automatically informed about the latest market insight, please click here to subscribe.