Greater Manchester to see greater opportunity for first-time buyers

 

With more than 10,000 properties across Manchester now exempt from stamp duty for first-time buyers, youngsters will be flocking to join the queue. Will this push prices up?

Figures from Rightmove show that the changes made in the Autumn Budget will unlock an extra 10,833 properties for first-time buyers looking to avoid stamp duty.

The changes mean that the tax is abolished for first-time buyers on homes costing up to £300,000, or on the first £300,000 of purchases up to £500,000, which will help in pricey places like London.

The average cost of a home in Manchester is £158,800 according to the latest figures from October, which falls well under the £300,000 threshold and is around £67,500 lower than the national average, which is around £226,367 according to Land Registry figures.

Ann Irwin, residential property partner at Manchester law firm Slater Heelis, said: “This is a change, not a stamp duty holiday so there is no time limit and it can be used on second hand properties not just new build homes, which will have a bigger effect right across the market.

“It can also be used in conjunction with other incentives like Help To Buy ISA’s and Help To Buy on new build homes.”

For people who had already factored stamp duty into their homebuying costs, the unexpected windfall will be very welcome to cover the other costs of buying a house, such as solicitor’s fees.

One first-time buyer, James Turner from Salford, is now around £1,000 better off in his purchase of a £174,995 home.

He said: “We are going to use the money to either upgrade the kitchen or get the back garden turfed, but we could have used it to reduce the mortgage.”

The cynic’s view

Phillip Hammond’s announcement inevitably attracted some criticism, though. The Office for Budget Responsibility (OBR) said that the new rules were likely to cause property prices to rise by around 0.3%, with most of the effects being felt in 2018.

The OBR said: “Post-[stamp duty] prices paid by first-time buyers would actually be higher with the relief than without it. Thus the main gainers from the policy are people who already own property, not the first-time buyers themselves.”

And think tank The Resolution Foundation claimed that the change would lead to an average £3,200 increase in the cost of an average-priced home, whereas the stamp duty relief would on average only deliver a £1,600 saving to the buyer.

The average time it takes for a first-time buyer to save for buying a home has only shrunk marginally, from 19 years to 18.5, according to the think tank.

However, while the potential rise in house prices is obviously not a good thing for those trying to get on the property ladder, the tax break will still make a difference to thousands of homeowner hopefuls. Stamp duty is a cash cost that must be paid for upfront on the completion of the sale – it cannot be added onto the mortgage – so not having to find those extra few hundred or even thousands of pounds during an already expensive process will be a welcome relief.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

sofa

Greater Manchester to see greater opportunity for first-time buyers

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.