Property comes alive

Published on 16 July 2020

Town Centre property agents, Lane & Holmes, give their view of boost for economy as a result of Chancellor’s summer statement: 

Nick Kier DL is talking up Bedfordshire in these interesting times:

"In an eagerly awaited summer statement, the Chancellor of The Exchequer set out a number of initiatives designed to help kick start the British economy post Covid 19 including a Stamp Duty holiday on property purchases and a £1,000 bonus to employers who keep staff on, who have been furloughed, until at least 31st January 2021.

Locally the property market in Bedford has been resilient throughout this crisis with a very strong sentiment from buyers and sellers alike since the fourth week of March when lockdown occurred.

Estate Agents were allowed back in to their offices from 12th May and since then, even without the latest stimulus, agents have been reporting brisk business as what was seen as pent up demand kept their diaries busy. That pent up demand, eight weeks later, has turned in to something much more consistent and it seems that Bedford, which has appeared to be in a unique property bubble for some time, is still proving popular with purchasers.

The Stamp Duty holiday announced by the Chancellor can only add fuel to this particular fire and it would seem that property transactions in Bedford and all areas are set to benefit from this stimulus.

All buyers purchasing property up to £500,000 will pay no duty until 31st March next year. The saving at £500,000 is £15,000. Not to be sneezed at! You should bear in mind that this saving is made by everyone, even those buying in excess of £500,000. It is the first £500,000 that is now exempt from the stinging duty. First time buyers purchasing up to £300,000 have enjoyed a similar exemption for some time.

Investment purchasers are not neglected either. They still pay the additional 3% surcharge but the duty payable on the first £500,000 of their purchase is not payable. Those buying via companies will also benefit.

There seems little doubt that those who are in a position to benefit from this initiative will want to and that business will remain brisk until the deadline next March. The Chancellor will be hoping that they do not squirrel away the saving but go on a buying spree for the incidentals of property purchase including the carpets, curtains, kitchens and bathrooms that will help to revive the wider economy.

Keeping people in jobs as the country recovers from the crisis is essential on so many levels and it has to be hoped that employers will be encouraged by the £1,000 per employee bonus offered by the Chancellor for those workers who have been furloughed and who are still in employment at 31st January. We have to hope that employers will value their employees and do all they can to keep them employed in to the future as we all pull together and work for the recovery. Employed people spend money which fuels the economy and keeps all of our businesses going. It’s that simple”

Lane and Holmes

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