Hotspots for stamp duty exemption revealed

17 July 2020 | General

London, Manchester and Birmingham are home to the largest number of homes listed for sale at £500,000 or less thus part of the stamp duty exemption, according to research by lettings and estate agent Benham and Reeves. The figures show that London has 42,422 properties, Manchester has 7,365 properties and Birmingham has 7,011 properties currently for sale at £500,000 or less. Liverpool, Bristol, Nottingham and Glasgow follow closely behind.

Belfast, Swansea and Aberdeen contain the largest proportion of property stock listed at £500,000 or less as a percentage of all homes listed for sale. The capital is also home to the largest number of pending sales due to benefit immediately from the stamp duty holiday. Of the 42,422 homes listed for sale in London, 16,409 are already sold subject to contract or under offer.

Benham and Reeves looked at current property stock levels listed for sale on Rightmove across 23 major UK cities. As part of the data, the estate agent looked at which city was home to the highest percentage of stock in the £500,000 or less threshold and which city has the most homes sold subject to contract or under offer to see where would see the most immediate stamp duty free boost for homebuyers.

Marc von Grundherr, director of Benham and Reeves, said: “Breaking down the current property stock available on the market really gives us a good idea as to just how many people are due to benefit from the changes to stamp duty announced last week.

“The figures show that the vast majority of homebuyers will be better off as a result. Even in London, there will be a considerable saving for a vast number of those transacting across almost every borough.

“However, there is a chance that savvy home-sellers who may have seen the value of their property slump due to the recent pandemic will now increase their asking price by that little bit extra.

“Our advice to homebuyers would be to know your market, stick to your guns when making an offer, and keep your stamp duty saving in your back pocket. You can use it as a bargaining chip should you need it further down the line when negotiating, but don’t be forced to over offer straight away.”

This post has originally been featured in Property Wire.