Barnet & Whetstone Property Market Update – August 2024
By Michael Holloway – Partner Hunters Estate Agents
The local North London property market looks set for a busy Autumn, following the recent interest rate cut by the Bank of England. In what is typically a seasonally quiet time in the property business, August has already seen significant signs of market activity with a much higher than average number of viewing appointments, properties coming to the market and sales agreed.
Lower mortgage interest rates and the impending changes to First-Time buyer stamp duty threshold is an almost certain recipe for creating high demand for first homes and a rush to complete the purchase before the April deadline.
Stamp Duty Changes for First-Time Buyers
First-time buyers have until April 2025, which is just 8 months away before the current savings on stamp duty will end. Currently, and until April 2025, first-time buyers do not have to pay stamp duty on a property purchase up to £425,000, and should the property be more expensive, they only pay the tax on the portion above £425,000.
After April 2025, the limit, which has been at this reduced level since 2022, is due to revert to its original threshold of £300,000.
How much more will it cost First-Time Buyers?
The increase in the cost of purchasing a first home will be significantly higher after April 25. As an example, currently, a first-time buyer who purchases a home at £425,000 pays no stamp duty. From April of 2025, the same property purchased at £425,000, the stamp duty will be £6,250.
To make matters worse, if a first-time buyer were to have an offer on a property accepted today, typically the minimum transaction time would be 3-4 months but could easily extend to 5-6 months.
The increase in time scale is more likely given the increase in transactions this change will create. In what is already a notoriously slow transaction process, add to this the Christmas break and the time scale is getting very tight.
The bottom line is, that first-time buyers looking to avoid the increase in stamp duty will need to start the buying process sooner rather than later.
How to calculate stamp duty?
You can check how much stamp duty you will currently pay by using the official government stamp duty calculator, although, the general rule is that first-time buyers pay nothing on the portion up to £425,000, and 5 percent on the portion between £425,001 and £625,000.
Those paying more than that cannot claim the relief and are subject to the same rules as non-first-time buyers.
A selection of First-Time buyer homes from Hunters
Here are just a few properties that would suit first-time buyers from our offices in Barnet and Whetstone –
Penthouse Apartment for sale in New Barnet – £475,000
Flat for sale in Barnet – Offers Over £400,000
Flat for Sale in New Barnet – Offers Over £385,000
Flat for Sale in Barnet – Offers Over £325,000
Flat for Sale in Whetstone – £225,000
To see the very latest homes coming to the market, click ‘New to market homes’, this lists all of the very latest homes as they come to the market.
See our ‘Recently Sold Properties’.
Mortgages
The Rightmove weekly mortgage tracker shows that the average 5-year fixed mortgage rate is now 4.80%, significantly lower than 5.82% a year ago. The report confirms the best available 5-year fixed rate is now 3.83% for those with a 40% deposit, the lowest a 5-year fixed rate has been since the period before the mini-Budget in September 2022.
If you are considering a move, It is more important than ever to shop around for the best deals and remember that not all deals are advertised, some of the best deals are only available from mortgage brokers.
Contact mortgage advisors Simpson Bowers, a firm of local independent financial advisors on
020 8275 8555. www.simpsonbowers.co.uk I can highly recommend them as they have helped many of our clients, including myself.
Ready for a move in Barnet or Whetstone?
Please feel free to call me at our Barnet office or Elliot at Whetstone if you are considering selling your home in the Barnet and Whetstone areas, either for an informal chat about the market and how we might help you with this or to book a market appraisal.
You can also use our Instant Online Valuation tool.
Good luck with your house hunting.
Michael Holloway – Hunters
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