Mini property boom before stamp duty holiday end?

Figures released from HM Revenue and Customs (HMRC) have revealed that property sales reached their highest level in 16 months during November, with some suggesting that first time buyers are rushing to beat the end of the stamp duty holiday on 24th March 2012.

Approximately 85,000 properties were sold throughout the UK in the month of November - an increase of 6,000 compared to October, and 9,000 compared to November 2010. It should however be noted that the number of property sales in Northern Ireland largely remained the same compared to October, and the increase in transactions largely took place in England.

Despite many predictions that the property market will drop further at the start of the new year, there are other commentators who are predicting a rush of first time buyers completing purchases in the first quarter of 2012 before the 'stamp duty holiday' ends on 24th March. There is currently an exemption for first time buyers in place, meaning they do not have to pay the 1% duty on purchases of property priced between £125,000 and £250,000. Therefore, on a property costing £150,000 first time buyers are currently spared an additional expense of £1,500 in stamp duty. That amount will however be payable after the 24th March when the exemption expires.

Christine Farrell, a conveyancing solicitor specialising in residential property at Wilson Nesbitt in Belfast, commented:

"Any speculation of a mini-property boom may be in England only, and even then, perhaps just in the Greater London area. The end of the stamp duty holiday will only be a factor for would-be purchasers considering buying a property over £125,000. In Northern Ireland, many of the first time buyers getting on the property ladder are doing so under the £125,000 threshold, such is the extent of property devaluation in the province."

If you require a conveyancing solicitor to handle a house purchase, sale or remortgage of a property in Northern Ireland, contact one of the property solicitors at Wilson Nesbitt by calling 0800 840 9290.

 

 

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