If the Chancellor wanted to win the hearts and minds of younger voters, this was the budget.
Help to Buy continues to help the property market but it’s stamp duty that is strangling transactions, particularly with homes in the higher price bracket.
We welcome the move by the Government to reduce the impact of Stamp Duty on housing market activity and potentially offer savings amounting to several thousand pounds for first-time-buyers.
Stamp Duty adds thousands to the upfront cost of moving to a new house.
Scrapping this for first-time buyers will encourage more young people to the market that are put off and struggling with an overly complex and costly system.
The number of first-time buyers in Birmingham has fallen in recent years and we are seeing fewer young people contacting us.
As house prices have risen in recent years deposit requirements have been pushed up.
The average deposit is £30,000 for a typical first-time buyer home in Birmingham – a major hurdle for buyers trying to get onto the ladder.
If the average house price in Birmingham is £140,000, the stamp duty saving is not that high - it would be £300 - as stamp duty is just 2% over every £125,000.
However, for first time buyers purchasing homes in the higher price range, towards £300,000, the savings will be greater.
I think the Birmingham market continues to hold its own price-wise, partly due to lack of stock but also because of the growing popularity of the city.
Rental prices have risen sharply over the last two years in Birmingham, but we will see them levelling as new apartments come on to the market next year.
What’s interesting is that your average monthly rent for a one-bed apartment in Birmingham city centre is £725.
You’d pay double that in London and over four times in the aspirational post codes.
Whilst there has been evidence of vendors holding onto properties this year, from the volume of recent valuations we are expecting a strong 2018 in terms of turnover.
Maguire Jackson specialises in letting services and property sales across Birmingham. For more information click here