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The stamp duty holiday has been in effect for over a month now, and many people are wondering how it will affect them, and the local housing market.
At Lock & Key, we know the Melksham property market. We have worked closely with vendors and buyers, and in recent weeks, there has been heightened activity in the housing market. There has also been a spike in activity across the country, and we will ensure you remain fully informed as to what is happening in the housing market.
Key points of the stamp duty holiday
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
The Office for Budget Responsibility expects around 100,000 additional property transactions to occur because of the stamp duty holiday. However, not all buyers are likely to benefit in the same manner, and some buyers will not be affected at all.
How the stamp duty holiday impacts buyers in Melksham
As of August 2020, Zoopla lists the average price of property in Melksham as £263,255. This figure is below the stamp duty threshold, which means anyone buying at this price will not pay any stamp duty, as long as the deal is concluded before the deadline. The stamp duty associated with a property purchase of this magnitude before the stamp duty holiday was £3,162.75.
Flats in Melksham
The average price paid for flats in Melksham over the past 12 months is £112,250. Even before the stamp duty holiday came into effect, the average price for flats was below the stamp duty threshold. Therefore, for people buying flats at the average price in Melksham, the stamp duty holiday makes no difference.
Terraced properties in Melksham
The average price paid for terraced property in Melksham over the past 12 months is £197,063. There is no stamp duty payable at this price with the stamp duty holiday, representing a saving of £1,441.26 for a buyer.
Semi-detached properties in Melksham
The average price paid for semi-detached properties in Melksham over the past 12 months is £241,469 and again, this figure is below the stamp duty threshold. A buyer will not have to pay stamp duty on the purchase, which represents a saving of £2,332.98.
Detached properties in Melksham
The average price paid for detached properties in Melksham over the past 12 months is £358,728 and again, this figure is below the stamp duty threshold. A buyer will not have to pay stamp duty on the purchase, and this represents a saving of £7,936.40.
If you are keen to capitalise on the stamp duty holiday, we are here to assist you.
If you are looking to make a move in the Melksham property market, and you would like to speak with local experts, please get in touch. If you would like to arrange a property valuation, contact us and we will set this up for you. You can phone Lock & Key on 01225 707 342 or why not come and visit us at 5 Church Street, Melksham.