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The UK property market is continuing to spring surprises. Staying on top of all the news and updates can become daunting, confusing, and at times near impossible. At Zoom, we understand that the market is challenging, especially for first time buyers.
For that reason, Stuart Robinson, our Director, will be lending his knowledge of the market, predictions and opinions via our monthly blog, to provide some much needed clarification. To kick start, we’ll be looking at a current overview of some key aspects of the market.
Stamp Duty
Stamp duty is the tax you pay when you purchase a property or land. Chancellor Kwasi Kwarteng recently announced cuts to Stamp Duty in a bid to bolster the market.
The zero-rated range for all purchasers will be increased from £125,000 to £250,000 while the zero rate paid by first-time buyers will be increased for homes worth up to £425,000. This is an increase from the current £300,000. The amount of money that first-time buyers can get back in zero-rate relief when they buy a home rises to £625,000. This is a way to help young aspiring buyers who are struggling, especially those in London and the South.
This change is positive for first time buyers who can now save a maximum of £6,250 on the purchase of their property. With it now being easier to get on the property ladder, expect first time buyers to benefit. We understand that understanding these figures can be challenging, if you’d like to find out more, please don’t hesitate to get in touch with the team.
Selling your property
It's a good time to sell a house right now in the UK property market because prices are high and there is a lot of demand from buyers. With it becoming slightly easier for first time buyers, there will be an increase in buyers on what already is a busy market. Sellers do need to be realistic with prices if they are serious about selling their property. If you’re looking for a valuation of your property, why not check out our Free Online Property Valuation tool?
Interest Rates
In what has been a whirlwind of a month, The Bank of England has increased the base rate to 2.25% which has already increased the mortgage costs of millions of UK homeowners.
Those on tracker, standard variable rate or variable mortgage rates will be affected immediately. However, if you’re on a fixed rate, you’ll only be affected when looking for a new mortgage.
Simply put, raising interest rates makes borrowing more expensive so less of an incentive to purchase a property.
Rent
Due to the shortage of properties on the market and the challenges in the market itself, renting has become the only option for many. Whilst this is good news for landlords, tenants are facing rent prices at an all time high.
In some areas, such as London, they have increased by more than 10% in the last year. This has made it increasingly difficult for people on low incomes to find affordable accommodation.
The government has recently introduced a number of measures to try and help tackle the problem of high rents. These include capping rent increases in certain areas, and introducing a new scheme to help people who are struggling to pay their rent. However, it is unclear whether these measures will be enough to bring rents down to a more affordable level.
As detailed in this blog, the current UK property market is a challenging one. Whilst it may seem daunting, especially if you’re looking for your first property, Zoom can help. Get in touch with the team:
T: 0333 358 3095 Lines answered 8-8 Mon to Fri,9-5 Sat, Calls monitored on Sun
E: sales@zoomestateagents.co.uk
E: lettings@zoomestateagents.co.uk
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