There has been a lot of focus on the stamp duty holiday introduced in early July, and how it will help buyers move home. Some industry sources claim the stamp duty holiday will lead to an additional 100,000 homes being sold this year across the UK.
Of course, the stamp duty holiday doesn’t just affect buyers; it affects vendors, landlords and tenants.
If you are a vendor, you will likely take confidence from having more willing buyers in the market. Also, if a vendor is also looking to buy a home, they have a chance to capitalise on the stamp duty saving too.
Landlords can benefit from the stamp duty holiday
While some landlords might be concerned about tenants being able to step on the property ladder, this isn’t as pressing a concern as you might think.
The stamp duty holiday is geared less towards assisting first-time buyers, and more towards helping existing homeowners move home. In this respect, the demand for a rental property shouldn’t alter too much.
However, landlords might benefit from saving money in expanding their property portfolio. This might assist tenants too, as it will hopefully create a more abundant supply of rental property in the market.
At Just Lets, we focus on the Peterborough market. If you are a landlord or tenant in or around Peterborough, and you want guidance on how the stamp duty holiday affects you, please get in touch. We are more than happy to discuss this issue, or any other Peterborough letting problem you might have.
What are the stamp duty changes?
On Wednesday 8th July, the Chancellor of the Exchequer, Rishi Sunak, has announced an increase in the stamp duty threshold in the Summer Update. The key points of the stamp duty changes are:
- Stamp duty threshold is now £500,000
- This increase in stamp duty threshold is set to run until 31st March 2021
- The increase in stamp duty threshold takes place immediately
How will the Peterborough market be affected?
According to Zoopla, as at the end of July 2020, the average price paid for property in Peterborough (over a 12-month period) is £230,883. With the stamp duty holiday in place, buyers will pay no SDLT on this property.
For landlords buying property at this price, there will be a stamp duty charge of £6,926. This is because even though the stamp duty holiday applies to landlords and property investors, the additional 3% stamp duty charge is in effect for landlords.
Without the stamp duty holiday, a landlord buying at the average price of property in Peterborough would have to pay £9,044.15. Therefore, landlords enjoy a saving of more than £2,000 thanks to the current measure.
If you are a landlord in or around Peterborough, and you need assistance in finding your ideal tenant, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.