Brits rush to take advantage of stamp duty holiday as more put homes on market

BRITISH homeowners have been taking advantage of the stamp duty holiday with 12% putting their property on the market in the past four months.

Thousands of adults have chosen to up-sticks and take advantage of the tax relief announced by Chancellor Rishi Sunak earlier this year, which is available until March 2021.

More people are putting their homes on the marketCredit: PA:Press Association

A further 28% are considering their options to move, and one in 20 want to relocate before the holiday ends.

The study of 2,000 homeowners found almost half think the new rules have put them in a better financial position – if they wanted to move.

However, it comes after experts warned in October how up to 200,000 people risked missing out on stamp duty savings if mortgage deals aren’t completed in time.

An earlier this month, separate research showed many as half of house sales agreed now will miss stamp duty discount deadline.

Top reasons to move home

THESE are the number one reasons why Brits decide to move home, according to Skipton Building Society:

To increase the size of the property – 33%
To downsize – 21%
To move nearer the country – 20%
To move nearer to a new job / employment opportunities – 5%
To move nearer the city – 4%
To move closer to a child’s school – 2%
To move nearer parents – 2%
To move closer to a partner – 1%

Skipton Building Society’s Group owned estate agency Connells has reported a 29% increase in new instructions of properties to the market in quarter three of this year compared to this time last year.

While property search registrations have risen by 36%, and first-time buyer registrations are up by 27%.

The temporary tax relief, along with the easing of lockdown restrictions, has seen house prices boom this summer as property buyers race to move home.

Alex Beavis, head of mortgages at Skipton Building Society, said: “The housing market is booming since the stamp duty announcement, with many asking if now really is the best time to sell and buy.

“There are lots of reasons why buying now might be a great idea: the stamp duty changes, savings may have increased due to lack of spending, a buoyant sellers’ market, mortgage rates at their lowest and house prices matching up.

“However, there are also reasons for buyers to be cautious. Buying a home is like any other big decision and the best way to approach it is rationally.”

The increased demand for houses is pushing house prices higher, and Connells forecast that the average prices for the rest of 2020 will be 7% higher than this time last year.

The stamp duty holiday has opened possibilities up to homeowners and first-time buyers that may not have been accessible before, with more than a quarter of people taking more of an interest in the housing market since the July broadcast.

Up until July 8, most house-buyers in England and Northern Ireland had to pay stamp duty on properties over £125,000.

This was temporarily increased to £500,000 until March 31, 2021 in the government’s mini-Budget in July 2020.

For those who are either moving, or considering a move, stamp duty rules have made it possible for 33% to consider increasing the size of the property.

While 21% feel they now have the opportunity to go the opposite way and downsize.

Number of people who’ve considered moving home

HERE are the number of people that have considered putting their homes on the market, according to Skipton Building Society:

Regional breakdown of England:

East Anglia – 22% (31,175 people)
East Midlands – 21% (48,110 people)
London – 44% (359,280 people)
North East – 32% (13,285 people)
North West – 25% (80,300 people)
South East – 31% (151,388 people)
South West – 26% (42,120 people)
West Midlands – 25% (62,045 people)
Yorkshire and the Humber – 28% (74,061 people)

The stamp duty holiday also makes it possible for 62% of those who have considered moving to buy somewhere which needs a little money spending for renovations and decorating.

While 58% like the idea that they could free up some cash to landscape or do up an outdoor space.

It also emerged that 25% of owners have spent more time browsing houses for sale online, regardless of whether they actually plan to move or not.

This has led to 15% of adults polled via OnePoll going to house viewings – seeing an average of nine so far.

Regionally, London has seen 350,000 adults placing properties on the market after the introduction of the new rules.

This compares to around 80,000 in the north west, 150,000 in the south east and 42,000 in the south west.

Alex Beavis for Skipton Building Society added: “It’s important for all buyers and sellers looking to benefit from the stamp duty changes to note that with the stamp duty holiday ending on the 31st March 2021, there is a risk and concern that now may be too late to go in search of that benefit.

“Some property sales and purchases at this later stage may not actually complete until after – with people potentially missing out on the initial benefit they put their property on for in the first place.

“With larger populations than all other regions in England, it stands to reason more people in London and the south east would be in a position to move.

“There is an appetite among Brits to get good value for money, and we certainly seem to be seeing that when it comes to house moving.”