Recent research carried out in the UK housing market suggests London buyers have enjoyed the most benefit of the stamp duty holiday.
The findings suggest 85% of property transactions since July 8th have been below the £500,000 threshold. This means they are exempt from stamp duty for the duration of the holiday.
Of course, homes that were affordable enough, or which were bought by first-time buyers would likely have been exempt from stamp duty anyway.
We cover a range of locations in South West London
Across South West London, we cover a wide range of areas, and we know there are plenty of options for buyers, no matter their budget.
According to Rightmove at the end of January 2021, the Tulse Hill housing market can be described as follows:
“Properties in Tulse Hill had an overall average price of £573,623 over the last year. The majority of sales in Tulse Hill during the last year were flats, selling for an average price of £429,383. Terraced properties sold for an average of £818,069, with semi-detached properties fetching £1,014,528.
Overall, sold prices in Tulse Hill over the last year were 8% up on the previous year and 5% up on the 2016 peak of £546,377.”
By way of contrast, Rightmove describes the January 2021 Victoria property market as follows:
“Properties around Victoria had an overall average price of £2,045,625 over the last year.
The majority of sales around Victoria during the last year were flats, selling for an average price of £1,655,184. Terraced properties sold for an average of £3,729,335, with semi-detached properties fetching £2,950,000.
Overall, sold prices around Victoria over the last year were 5% down on the previous year and similar to the 2014 peak of £2,035,250.”
London buyers enjoyed significant stamp duty savings
The findings indicate there have been stamp duty savings of £190m alone in the capital. 49% of London purchases completed below the £500,000 threshold, meaning no tax was paid.
By contrast, 99.7% of all residential transactions in Sunderland have been stamp duty exempt. This is because the homes were cheap enough to go below the main stamp duty threshold, or they were bought by first-time buyers.
The study found 147,969 transactions which would have been eligible for stamp duty without the holiday, but which were exempt as they concluded after July 8th.
The agency said; “Before the stamp duty holiday, the 147,969 homebuyers would have paid £1.444 billion in stamp duty. Thanks to the reprieve in place, the stamp duty paid equates to £627.467m, a saving of £817.0m.”
Around £5.6m a day have been saved by buyers since the stamp duty holiday was introduced. If you want to make an informed decision regarding the South West London housing market, get in touch.
We have considerable experience and expertise in the South West of London. We are ideally placed to help vendors, tenants and landlords during this challenging time. If you have any questions regarding the South West London property market, please get in touch with Holmes Estate Agents today.