Demand for houses rises 83% in Bromley after stamp duty cut

Bromley has seen one of the largest surges in house hunting inquiries in the country following last week’s stamp duty cut.

According to analysis from Rightmove, Bromley has seen a whopping 83% rise in housing inquiries, and commuter belts surrounding London have particularly benefitted from the Government’s announcement.

Rightmove compared home hunters’ inquiries about properties in the days following the Government’s announcement with the same period the week before.

It found that Milton Keynes, Watford, Harrow, Chelmsford, Ilford and of course Bromley are among the locations seeing particularly big jumps in buyer inquiries.

Rightmove said the biggest jump in buyer inquiries has been for homes priced just under the threshold at which stamp duty now applies.

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It has seen a 49% increase in demand for homes priced at £400,000 to £500,000.

The next biggest jump has been a 40% increase in inquiries about homes priced at £500,001 to £750,000.

There has also been a 26% increase in demand for homes priced at £300,001 to £400,000.

Homes in the most and least expensive price brackets have seen the smallest impact.

Chancellor Rishi Sunak announced last week that in England and Northern Ireland where stamp duty applies, buyers will pay no stamp duty on the first £500,000 of their purchase when they move home.

The measure, which lasts until March 31 2021, temporarily increases the “nil rate” band of stamp duty from £125,000 to £500,000.

Buyers can potentially save up to £15,000, but the level of savings depend on the household being purchased.

Last week, separate Rightmove analysis showed that London, and in particular south east London, will be one of the biggest beneficiaries of the move.

according to the website’s estimates, buyers in London could save typically save £15,000.

This compares to £10,980 in the south east, £1,638 in the north west, and just £646 in the north east.

On top of this, according to analysis by Rightmove, the biggest stamp duty savings in the capital can be found in Orpington, Bromley.

The average asking price in the south-east London area is £497,852 and buyers could save £14,893 through the stamp duty holiday, the research showed.

Also on the list of top ten areas with the largest potential savings in the capital is Sydenham in Lewisham which offers £14,648 potential savings, and Blackfen in Bexley, which offers £13,501.

Deptford, also in Lewisham bordering Greenwich, offers £13,283 and Biggin Hill in Bromley offers £13,935.

Rightmove’s commercial director Miles Shipside said: “The uplift in inquiries is likely a mixture of people looking in new areas to see what they can now afford, changing their search criteria to bigger, slightly more expensive homes, and new movers coming into the market because they now have enough extra budget to move home.

“The savings of £15,000 on property above £500,000 may also help some people to trade up more easily.

“Our analysis shows that this is going to help the mid-market the most, but all parts of a property chain are vital to keep the market moving.”

Mr Shipside also sounded a note of caution for first-time buyers.

He said: “Although low deposit mortgage options are slowly coming back to the market, first-time buyers who were already exempt from stamp duty up to £300,000 may find that they will be competing with some buy-to-let investors also looking to make the most of the stamp duty savings in this sector of the market.”

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