Reading Property Market Update – August 2024
By Charlie Higgs – Owner Village Properties
Following a typically subdued July in the Reading Property Market, the Bank of England’s interest rate cut on the 1st of August triggered a flurry of activity that looks to be the start of a busy Autumn.
With increased numbers of properties coming to the market, viewing appointments, offers and sales agreed, what is traditionally a seasonally quiet month has been a busy one.
It seems that the cut in mortgage interest rates and the imminent change to the stamp duty threshold has been the catalyst that has motivated the first-time buyer market, creating higher demand for first-time buyer homes, in the rush to complete property purchases before the April deadline.
What are the Stamp Duty Changes for First-Time Buyers
First-time buyers who fail to complete a property purchase before April 2025, just 8 months away, stand to lose thousands of pounds as the current savings on stamp duty come to an 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 Can First-Time Buyers Save?
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 per cent 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 Village Properties
Here are just a few first-time buyer properties recently listed for sale from our Tilehurst Office –
House for Sale in Tilehurst – Guide Price £395,000
House for Sale in Tilehurst – Guide Price £300,000
Apartment for Sale in Reading – Guide Price £260,000
Flat for Sale in Reading – Guide Price £265,000
Apartment for Sale in Reading – Guide Price £160,000
House for Sale in Calcot – Guide Price £365,000
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.
Or see more ‘Recently Sold Properties’.
Considering an Autumn move?
If you are thinking of buying or selling a home in Tilehurst or the surrounding areas of Reading, please feel free to call me for an informal chat, I’ll be pleased to help you if I can.
You can also book a Face to Face Valuation, or use our Instant Online Valuation tool.
Thank you for reading
Charlie Higgs – Village Properties Tilehurst & Twyford
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