What does the stamp duty holiday mean for the housing market in North Somerset?

Anyone moving house in North Somerset can save thousands after the Government announced a stamp duty

Anyone moving house in North Somerset can save thousands after the Government announced a stamp duty holiday. Picture: Getty Images/iStockphoto - Credit: Getty Images/iStockphoto

North Somerset movers completing their property purchases between now and March 31 next year stand to save thousands on stamp duty.

The stamp duty threshold has today been increased from £125,000 to £500,000, meaning savings of up to £15,000 for people in North Somerset.

Chancellor Rishi Sunak announced the much-anticipated stamp duty holiday as part of a raft of measures designed to keep the economy moving.

He said the average stamp duty bill will drop by £4,500 as a result, with nearly nine out of 10 people buying their main home this financial year now set to pay no stamp duty at all.

The changes will take effect immediately for movers in England and Northern Ireland and will be in place until March 31 next year.

Until today, the stamp duty payable for residential property stood at two per cent on homes priced between £125,00-£250,000, five per cent on £250,001-£925,000, 10 per cent on £925,001-£1.5million and 12 per cent on the portion above £1.5million.

Discounts were already in place for first-time buyers up to £300,000 (who then paid five per cent on any portion between £300,001-£500,000) as well as a three per cent surcharge for second home buyers, which remains unchanged.

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Daren Podbury from Avery Estate Agents said the stamp duty holiday is already having a positive effect on the housing market in the area.

He said: “It’s estimated that the lockdown prevented about 175,000 potential sellers marketing their homes nationwide, and we certainly saw this effect in Weston and Worle during the earlier weeks.

“I think now, more than ever, home movers are looking for longstanding, trustworthy agents, who they know will have previous experience in markets similar to this.

“The Government has now implemented the stamp duty holiday up to £500,000 until March next year, which has already began having a positive effect on the market, and is encouraging even more home movers to come to the market.

“The stamp duty holiday will effect about nine in 10 purchases nationwide, and we are expecting some very busy months ahead. Here at Avery, we’ve already noticed an increase in valuations, some heavily influenced by this update.”