At first glance there doesn’t seem to be any obvious painful news for the property marketplace coming our way in the Chancellors financial statement with no mention of a hike in CGT(Capital Gains Tax) on the sale of Second / BTL homes. Quite the reverse – the Chancellor is planning a £20 BM boost into the building of new housing. How this plays forward in Harrogate will be covered in a later blog given that our local plan already projects 13,000 homes being built by 2035.
So what is landscape at the moment?
The second national lockdown in England aimed at greatly reducing the spread of the awful Covid virus came into play on the 5th of November and is scheduled to end next week but with targeted changes to local tier classifications,
In the broad however some of the media are forecasting a difficult future for the housing market next year as our national economy fights to recover from the Covid crisis. To date all the pessimistic forecasts from London have been set aside by the good folk of Harrogate & District and our local Sales marketplace still remains amazingly buoyant. In fact Myrings have enjoyed record sales every month since June. Here we want to stress that we have not taken the crisis lightly but have thankfully & successfully managed / maintained all our key services in a very safe way for all parties concerned ie Sellers & Buyers / Landlords & Tenants / Professional Associates & Tradesmen – and ,of course, all our wonderful staff.
As things stand now the SDLT (Stamp Duty) holiday ends on the 31st March 2021 and there is no signal as yet of an extension. There is no question that zero tax on property up to the value of £500,000 did boost the Sales marketplace locally and has helped but our market was already busy. The reality however to that Buyers at the moment have more money to spend and more scope for a bigger / better properties. In simple terms – if you are buying a property at £500,000 the saving of £15,000 goes a long way towards a really great new kitchen or conservatory.
Sellers?:
If you’ve been deliberating whether to sell or not, we would say sell now and soon.
Although Harrogate is a Buyer’s market on the back of the sheer number of new properties coming into the market place , house prices In Harrogate have nevertheless remained steady or even increased because good properties are selling so fast and in such big numbers. However the Stamp Duty holiday deadline is coming up fast which worryingly is the exact reverse of the situation on Local Searches , Surveying and Conveyancing where there are significant delays.
Landlords?:
If you’re a Harrogate Landlord with one property or a whole portfolio, we think now it’s a good time to add to the properties you own despite the fact that the Stamp Duty holiday does not apply to second homes and a 3 % Stamp Duty tax will still be levied. Good competitive BTL (Buy-to-Let) mortgages are readily available from numerous Lenders.( eg – The RBS with a 2 year fixed at 1.35 % and 60 % LTV). Rents in the town remain strong and there is a shortage of good larger properties with outside space / garages land and sunny gardens for reasons we all understand.
The Market going forward?:
They say that bad news sells newspapers and we would not wish to understate all the heart breaking losses of the Covid epidemic but the doom mongers do tend to overplay their hand when it comes to property – especially in a town like Harrogate.
Is it all good news here ? – no of course not. The Mortgage Lenders are increasing the stress testing of new Mortgage applications – and as mentioned local Surveys & Searches are delayed and Conveyancing Solicitors are hard pressed to quickly expedite exchanges and completions.
- will Buyers making an offer to buy a new property today be moving into their new home before Christmas ? – in almost every case no ?
- can everyone still benefit from the Stamp Duty bonus ? – yes
- will the current property boom last ? – no one can say because in the final analysis the property market is mainly driven by sentiment.
- Is buying a home like buying stocks and shares – no , it’s our home to live in and we let our heart rule our head.
Property always will be , and always has been , a long-term investment and we say again to our clients today .Some Buyers had put off buying a home because of the Brexit uncertainty , now the reason is Covid uncertainly , and before too long there will be something else. There will always be “something else “.
Our message today is this . Here in Harrogate – in the heart of Yorkshire – we ready to take on all the challenges and opportunities which lie ahead.
Let us help you buy your new dream home now!!!!!!!!
If you wish to discuss the above or are interested in the Property market in Harrogate then please come along and see us and enjoy a free no obligation chat about the property services we provide in Residential Sales & Lettings.
Charles.
