Stamp Duty Reduction Fuels Interest In London Suburban Belt | Money

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The £ 3.8 billion gift unveiled by Chancellor Rishi Sunak last week has already sparked a mini real estate boom in the southern suburbs of England, according to the UK’s largest real estate website, Rightmove.The data indicate that most of the benefits of the £ 3.8 billion gift will go to the Conservative voting areas in the outer orbit of London.

Rightmove has named Milton Keynes, Watford and the borough of Harrow, north-west London, because areas witnessing more than 100% increase in buyer requests since the announcement of the stamp duty were made on Wednesday latest.

The largest increase in activity was recorded in houses priced between £ 400,000 and £ 500,000, where the benefit of the reduced stamp duty is greatest. Rightmove said that, throughout England, there had been a 49% increase in buyers’ requests for properties in this price range, compared to a mere 1% increase for properties valued at £ 300,000 or less .

As part of the Sunak stamp duty reductions in England, home buyers of up to £ 500,000 will pay no stamp duty, with a reduced rate for superior homes. For someone buying a house for £ 500,000, the savings are worth £ 15,000.

“We are busier than ever,” said Joe Frost, of Milton Keynes real estate agency Alan Francis. “It has been incredibly dynamic since the announcement of the stamp duty. We had a full person the next day and save £ 15,000 so they were very happy. It also means that people keep their prices firm – prices may not be as negotiable as before. ”

Rightmove said the top ten areas with the largest search hops – including Chelmsford, Swindon and Bromley – are all in the outer boroughs of London and the south of England, with an average asking price just below the £ 500,000 threshold.

Miles Shipside, Director of Rightmove, said: “The increase in inquiries is probably a mixture of people searching in new areas to see what they can now afford, changing their search criteria for larger homes and slightly more expensive, and new movers entering the market. because they now have enough extra budget to move.

“Saving £ 15,000 on a property over £ 500,000 can also make it easier for some people to trade. Our analysis shows that this will help the mid-market the most. ”

Rightmove collects data on two different bases: the number of inquiries from buyers, when someone phones or emails an agent via the site about a property; and searches, where someone simply types the area on the site to view the properties.

Milton Keynes led the increase in buyer demand, up 136% for properties priced between £ 400,000 and £ 500,000. But for research only, the largest increases were recorded in Borehamwood, Hertfordshire (+ 41%) and Caterham in Surrey (+ 38%).

There are also fears of an increase in buying and selling activity by homeowners at a time when first-time buyers are struggling to obtain loans following the Covid-19 crisis.

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