Budget and Cotswold Property Market Update
The most discussed property news in the budget was the extension to 30th June of the Temporary Stamp Duty cut in its current guise and 30th September when it returns to normal.
What this means to buyers:
No stamp duty is payable for purchases below £500,000 (unless it’s a second/additional home purchase) and £15,000 reduction for purchases over £500,000 if the sale completes on or before 30th June. From 1st July, no stamp duty is payable for purchases below £250,000 (unless it’s a second/additional home purchase) and £2,500 reduction for purchases over £250,000 if the sale completes on or before 30th September.
In addition, the 95% mortgage guarantee will be a great help to those trying to save to get onto the property ladder. This is applicable to those who are buying their main homes, so no second home or buy to let buyers, and is valid on purchases up to £600,000. This will drive the market from the bottom up, which is key to keeping the whole property market moving.
Elsewhere in the budget, the 130% capital investment allowance will boost manufacturing businesses investment, especially when businesses can borrow at about 2% currently. Being able to carry forward losses for three years will be a great help to hospitality businesses too. Overall, the economy looks set for a strong rebound, with the stimulus of about three months GDP being injected.
In the last six months of 2020 we measured price increases of 6% on average. In 2021 prices continue to increase as demand for houses outstrips supply. I predict prices will continue to rise and by the end of the year we will see values up a further 10%.
The letting market is booming too, with demand increasing as many ‘try before they buy’ and the number of properties available decreasing because they are now being sold, we are seeing prices and, in turn, yields increasing significantly. Now is a great time to be investing in the Cotswold property market.
Please contact Tom Hayman-Joyce and the Hayman-Joyce team in Moreton-in-Marsh on 01608 651188 or firstname.lastname@example.org