Stamp duty holiday aiding the swarm of Devon house-buyers

As the coronavirus pandemic continues to wreak havoc through the British economy, a number of measures have been introduced by the government in a bid to keep the economy moving. One such move has been the decision by Chancellor Rishi Sunak to announce a stamp duty holiday at the beginning of June. In doing so, the stamp duty threshold has seen an increase from £125,000 to £500,000 and for places such as the county of Devon, this is music to many peoples’ ears.

This increase in the threshold means savings of up to £15,000 for anyone moving in Devon. The county itself is already a thriving hotbed for the property market, a market that is experiencing a major spike following the lockdown. Off the back of such a spike, new property businesses are being created just like Fast Cash Property who provide a cash offer on homes in just 24 hours.

Why the Devon scenery is there to entice

For those wanting to move around the so-called English Riviera, the stamp duty holiday has been welcomed with open arms. The idyllic harbour towns of Torquay, Brixham and Paignton paint a perfect picture of a peaceful Devon with the towering cliffs of the northern Exmoor Coast contrasting superbly with the southern Jurassic Coast, with the latter well established as one of the most popular destinations in Britain. There is no wonder then that people are wanting to flock to the county in their droves following lockdown.

A drop in payment throughout the country

The stamp duty bill will, on average, drop by £4,500 as a result of the measures taken by Sunak and the government. That means that nine out of ten people that are purchasing their main home in this financial year will now not have to pay any stamp duty at all. These changes came into force at the beginning of July for movers in England and Northern Ireland and will remain in place until March 31 of 2021.

Prior to these changes, the stamp duty payable for residential property was at 2% on homes that were given price tags between £125,000-£250,000, 5% on those worth £250,001-£925,000, 10% on £925,001-£1.5m and 12% for those worth over £1.5m.

That has added to the positives for first-time buyers looking for houses. Discounts were already present up to £300,000 - who then paid 5% on any portion between £300,001-£500,000 - as well as a 3% surcharge for second-home buyers.

Why the time is right for people to look

Housing giant Rightmove notched its busiest ever day on Tuesday 7 July when nearly eight million visitors rocked up to their site. And, the reasons for that are simple. The two months of lockdown and the subsequent reopening of the housing industry have formed the catalyst for this rise with the coastal areas in Cornwall and Devon seeing the greatest amount of interest.

With lockdown preventing 175,000 potential sellers heading to market, the stamp duty holiday could well provide the motive for those to finally appear as the demand for their properties has increased by double to what they were prior to the lockdown.

On the flipside, movers are also more likely to agree to a price on their next home before some sellers hike up prices in a bid to take advantage of people’s tax savings. And, with the picturesque county leading the way, there has been a 126% rise for property searches in the South Hams of Devon.

If lockdown has taught people anything it is that remote working is becoming increasingly viable. This has led to greater demand outside the major cities, and, with Devon around a two-hour commute from London’s Paddington Station, there’s no wonder that the county is experiencing a spike in property interest. Taking into consideration that people are looking inwards instead of to the likes of Spain for a second holiday home, then the spike is likely to continue for some time.