The Office for National Statistics has announced that the average cost for a house in the UK has reached £250,000 for the first time. Incidentally, this is also the minimum threshold for the 3% stamp duty, which will now be chargeable on the average family home rather than particularly expensive houses or areas.
For those who are selling, this is excellent news. However, buying an average house will now incur a 3% stamp duty of around £7,500, which often can’t be placed against the mortgage and must be paid at the time of purchase. If the threshold for stamp duty had moved in line with house prices since 2000, only houses worth £550,000 would incur the 3% charge.
Young families and expanding households may prefer to convert their attic rather than pay this amount (in addition to solicitor fees and other expenses). This not only provides more space within the same area (keeping children within the same schools) but also adds more value onto your house price.
While house prices are increasing across the country, homes in London are increasing in value at more than double the rate of the rest of the UK, with a 12% increase. Home improvements are an excellent way to maximise this trend and ensure that you get the most that you can if and when you choose to move home.Tags: house prices, ONS
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