Was the stamp duty relief all smoke and mirrors?
It was hailed as a massive benefit that would save you thousands when buying your next home. which it directly did. There is no argument there. if you brought an average property in England back in July 2020 it would have cost around £253,441 and you would have saved £2,672 in Stamp duty due to the holiday. Result right.
What people are not taking into account now ,is that the house prices have seen mammoth rises mainly (but not entirely) down the the stamp duty relief. In March 2021 the average house price in England had risen by a whopping £13,091 to £266,532.
So whats the problem? Due to the extension you still would not be paying stamp duty, which now should have been £3327. However you are now paying a lot more for the house. In theory if you take the tax for stamp duty away you are paying on average £9,764 more than you would have in July.
Whats your take on this?
There is lots of talk about if the government did this as a smoke and mirrors attempt to trick people, or if it was impossible to tell that house prices where going to rise this much due to the stamp duty relief. We will let you make your own mind up. However it is important to note that sometimes short term savings don't always seem as they appear, especially in property. Only sell and move when the time is right for you and always seek advice from experienced professionals. Drop us a message and we will happily talk you through all the trends we are seeing in Coventry and Warwickshire.
Read the full article here from estate agents today.