PROMOTION All Change... Local property expert David Lewis from Garrington Property Finders discusses the sweeping changes being seen in the property market and what it means for anyone contemplating moving over the coming months The short notice announcement back in May that the Government was allowing the property market in England to reopen was followed in early July by the Chancellor providing an immediate cut in the Stamp Duty Land Tax (SDLT) for the first £500,000 of all residential property purchases slowdown as the market attempted to right itself. If this trend repeats itself, then the property market in April next year may grind to an uncomfortable halt and we may be asking ourselves if artificially boosting the market now simply kicked a problem David Lewis CARRINGTON down the line. until 31st March 2021. Whilst neither the extended timescale of this initiative, Another concern is if sellers see this announcement was a complete surprise as rumours had been circulating around the industry and in the media beforehand, helpfully boosting the market in what are typically the quieter months of January through to March. The generosity of the handout means that buyers' gift as rather one sided and look to increase prices or negotiate less, then this the rapid implementation caught many unprepared. The immediate effects of these two will artificially skew property prices going forwards. The surge in activity may also increase competition for certain properties, potentially increasing offer prices. changes were that many estate agents were ill-prepared to handle the sudden onslaught of pent-up demand from buyers. Many struggled to handle the volume of increased enquiries and thus perpetuate a buying feeding frenzy' in some price bands. In the case of the SDLT changes, the already energised market saw a fresh surge in activity, with property portal Rightmove reporting a 22% increase in website traffic around 90% of homebuyers in the coming months will pay no SDLT at all, saving up to £15.000 - a significant amount which will easily cover most moving fees and leave many with a 'nest egg' to invest in their future property or save for a later day. Of course, the changes to SDLT will not influence those who do not have to buy! sell or who are wary of possible longer-term price reductions reported in some parts of the media. However, this significant windfall may encourage those who were Other changes to be aware of In an attempt to boost the construction Industry, the government has also announced its plans to reform planning laws, effectively making it a lot easier to gain planning consent. Of course, this will be a welcome opportunity for some but for others, this presents a threat. Buyers need to be more careful of where they are purchasing because a sleepy village today may have an unexpected housing development in the future. within 30 minutes of the Chancellor's in two minds whether to move, to consider announcement and a subsequent hike in asking prices and number of properties going under offer. entering the market. The result of the above is that the property market and businesses which support it are likely to be busy in the coming months, thus Caveat emptor Buying property has always been a tricky business, which often requires both the How the SDLT changes might affect the market? On the positive side, by making the changes to SDLT effective immediately, the Chancellor put a helpful stop to the uncertainty which could have dampened the market once the initial surge of activity had abated. This was further boosted by helping to kick-start the economy. head and the heart to engage. The changes which have come into play, are likely to make a complex business much harder to read and more competitive, so getting proper local expert advice has never been more important. It may not be all good news Looking back on history, when the government last eased the SDLT burden, we sawa short burst of activity which led to demand outstripping supply, a subsequent hike in prices and then a significant It you are looking to buy a property and would value some advice on the local market, Garrington offer a commitment free discussion with David Lewis who would welcome the opportunity to share his knowledge of the area and the dynamic market that exists: 01565 818110 info@garrington.co.uk www.garringtonnorthwest.co.uk PROMOTION All Change... Local property expert David Lewis from Garrington Property Finders discusses the sweeping changes being seen in the property market and what it means for anyone contemplating moving over the coming months The short notice announcement back in May that the Government was allowing the property market in England to reopen was followed in early July by the Chancellor providing an immediate cut in the Stamp Duty Land Tax (SDLT) for the first £500,000 of all residential property purchases slowdown as the market attempted to right itself. If this trend repeats itself, then the property market in April next year may grind to an uncomfortable halt and we may be asking ourselves if artificially boosting the market now simply kicked a problem David Lewis CARRINGTON down the line. until 31st March 2021. Whilst neither the extended timescale of this initiative, Another concern is if sellers see this announcement was a complete surprise as rumours had been circulating around the industry and in the media beforehand, helpfully boosting the market in what are typically the quieter months of January through to March. The generosity of the handout means that buyers' gift as rather one sided and look to increase prices or negotiate less, then this the rapid implementation caught many unprepared. The immediate effects of these two will artificially skew property prices going forwards. The surge in activity may also increase competition for certain properties, potentially increasing offer prices. changes were that many estate agents were ill-prepared to handle the sudden onslaught of pent-up demand from buyers. Many struggled to handle the volume of increased enquiries and thus perpetuate a buying feeding frenzy' in some price bands. In the case of the SDLT changes, the already energised market saw a fresh surge in activity, with property portal Rightmove reporting a 22% increase in website traffic around 90% of homebuyers in the coming months will pay no SDLT at all, saving up to £15.000 - a significant amount which will easily cover most moving fees and leave many with a 'nest egg' to invest in their future property or save for a later day. Of course, the changes to SDLT will not influence those who do not have to buy! sell or who are wary of possible longer-term price reductions reported in some parts of the media. However, this significant windfall may encourage those who were Other changes to be aware of In an attempt to boost the construction Industry, the government has also announced its plans to reform planning laws, effectively making it a lot easier to gain planning consent. Of course, this will be a welcome opportunity for some but for others, this presents a threat. Buyers need to be more careful of where they are purchasing because a sleepy village today may have an unexpected housing development in the future. within 30 minutes of the Chancellor's in two minds whether to move, to consider announcement and a subsequent hike in asking prices and number of properties going under offer. entering the market. The result of the above is that the property market and businesses which support it are likely to be busy in the coming months, thus Caveat emptor Buying property has always been a tricky business, which often requires both the How the SDLT changes might affect the market? On the positive side, by making the changes to SDLT effective immediately, the Chancellor put a helpful stop to the uncertainty which could have dampened the market once the initial surge of activity had abated. This was further boosted by helping to kick-start the economy. head and the heart to engage. The changes which have come into play, are likely to make a complex business much harder to read and more competitive, so getting proper local expert advice has never been more important. It may not be all good news Looking back on history, when the government last eased the SDLT burden, we sawa short burst of activity which led to demand outstripping supply, a subsequent hike in prices and then a significant It you are looking to buy a property and would value some advice on the local market, Garrington offer a commitment free discussion with David Lewis who would welcome the opportunity to share his knowledge of the area and the dynamic market that exists: 01565 818110 info@garrington.co.uk www.garringtonnorthwest.co.uk