Stamp duty holiday 'will boost Northampton housing market' but left some furious to be missing out

'This will propel the property market forward and offer a much-needed lifeline to the housing sector'
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The stamp duty holiday for homes under £500,000 will give a boost to the housing market in Northampton, according to an estate agent in the town.

But those who just missed out on the temporary raising of the tax threshold for house purchases have been left furious with the government.

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Andy Denny, the director of Edward Knight Estate Agents in George Row, believes the measure is positive but will cause a rush when it comes to an end on March 31, 2021.

Will the stamp duty holiday boost Northampton's housing market?Will the stamp duty holiday boost Northampton's housing market?
Will the stamp duty holiday boost Northampton's housing market?

"Most houses in Northampton are priced below £500,000 so it's a very good thing for us but in central London, the holiday won't make a huge difference to many people," he said.

"But in Northampton, the benefit will be great as the average house price is around the £250,000 mark."

The Stamp Duty Land Tax holiday, effective from yesterday (Wednesday, July 8), could save homebuyers up to £15,000 or £4,500 on average.

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Chancellor Rishi Sunak said this would boost the property market and help buyers struggling because of the coronavirus crisis.

Martin Grant Homes sales and marketing director Dean MarkallMartin Grant Homes sales and marketing director Dean Markall
Martin Grant Homes sales and marketing director Dean Markall

Andy said the stamp duty holiday will mean homebuyers can either borrow more or increase their deposits - either way increasing their purchasing power and stimulating the market.

However, the estate agent warned that people on furlough are currently unable to borrow as much as they would normally and when the job retention scheme ends, the true cost of the pandemic could hit.

"I think it will hold our prices or even slightly increase them especially for homes below £500,000," he said.

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"But the main advantage of the holiday is to protect people in the middle tier as it makes them more affordable, especially at the higher end of that figure.

Housebuilders have also welcomed the stamp duty holiday with Martin Grant Homes, which is building the Buckton Fields development just outside of Northampton, describing it as a 'lifeline'.

Sales and marketing director Dean Markall said: “A period of stamp duty exemption will have a positive ripple effect throughout the industry, and house sales will be boosted.

"Homeowners will be encouraged to move as there will be no additional tax to pay, and first-time buyers will have more choice if they are in a position to purchase a larger home, as they will not have to pay stamp duty.

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“We welcome the proposed changes to stamp duty as set out by the chancellor, which will propel the property market forward and offer a much-needed lifeline to the housing sector."

One couple not so happy with the government is Keredy and Iain Andrews who completed on their new £435,000 house in Yelvertoft last week.

The parents-of-two were supposed to complete tomorrow (Friday), which would have saved them £11,000, but the date was brought forward by the party buying their old home.

Keredy, a self-employed PR and marketing consultant, has lost nearly all of her income during the lockdown and has relied on a government grant to pay the bills while Iain works full-time.

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The pair have written to Daventry MP Chris Heaton-Harris calling on him to convince the government to change the date but hold little hope of anything changing.

"We're furious, it just seems completely unfair and ridiculous to put a date on the start of the holiday when it should be backdated to when they opened the housing market and allowed moves again," she said.