As you will have seen in the media and in our recent blog post, the government has imposed a stamp duty holiday. This holiday will run until 31st March 2021. It means that anyone buying a property between now and the 31st March will not have to pay any stamp duty if their new home is up to the value £500,000.
If you have been toying with the idea of buying a new home for some time, then you may choose to buy a new home now. However, there are some things to consider if you are wondering if you should buy a new house in Peterborough now.
The beginning of lockdown prevented huge numbers of people from putting their properties on the market and it halted the progress of house sales for many people too. This means that there is an influx of homes in Peterborough on the market.
While this means that there are lots of houses for you to choose from, there is a downside too. Due to the stamp duty holiday lots more people are encouraged to start shopping around for a new home too. They too want to capitalise on the stamp duty saving that runs out in just a few months.
Logistically, there is no reason you can’t buy a new house now. Here at Letters Group we are open. We are offering virtual viewings or in-person viewings where social distancing is maintained. All the paperwork can be completed. Our mortgage advisors are still available for COVID-safe meetings too. Logistically, there is nothing stopping from buying a new house in Peterborough now.
One thing that you do need to consider when looking for a new home in Peterborough is that the stamp duty is only exempt on the first £500,000 of the sale price of your new home. As a house buyer you will still need to pay stamp duty on any amount over the threshold of £500,000.
The stamp duty holiday means that the stamp duty due is zero for homes up to £500,000. It is then 5% for homes between £500,0001 to £925,000. 10% stamp duty is due for homes between £925,0001 and £1.5 million. Finally, for homes £1.5 million and over the stamp duty due is 12%.
Some feel that the stamp duty holiday is unfair to those purchasing high value property. However, it is a very welcome tax relief to those that are purchasing a new home in Peterborough under the £500,000 limit.