With the increases to the current stamp duty threshold coming to an end, now is a good time to look back over the savings people have made on their property purchases and how you can make the most of the busy time ahead.
We all know that the various stamp duty holidays across the UK have helped thousands of people to make the decision to move house. In particular, many people have upsized, due to the savings they would make on the tax charges.
But, just how much has been saved since the holiday started?
In an article published by Financial Reporter last year, it was stated that the total forecasted savings by homebuyers would be close to £525m, by the end of April 2021. As the stamp duty holiday was extended, only time will tell how much has actually been saved in UK house purchases due to the tax relief.
Calculating SDLT savings
A great way to let your clients know how much they could save purchasing a property during the tax holiday, is by making the calculation for them. A useful online tool is Money Saving Expert.
Money Saving Expert hosts a calculator where you are able to enter the value and location of the property, to see how much your client will need to pay in stamp duty, or to highlight that they’re below the current threshold.
The page also includes information regarding rates for people buying a second property, relevant dates and the standard bandings for tax rates that will revert in July and October 2021, by region.
Insurance doesn’t need to be a blocker
House purchases have increased in the last year. Brokers and firms are being urged to prepare buyers in the event that they may not be able to complete their house purchase in time to make use of the stamp duty holiday. This can be disappointing, if you’ve forecasted for a hefty saving.
While many of the factors that might be holding up completions may be out of your control, home insurance isn’t.
In the rush of ensuring that you meet your customer’s needs ahead of the deadline, it could be easy to forget that their new purchase will require protection. Home insurance shouldn’t just be a tick box exercise to meet the mortgage lender’s requirements. It’s important to prepare buyers for unfortunate events that could result in damage to their home. Make your customers aware that they need insurance in place before the purchase is finalised, to ensure their new home is fully protected, should the worst happen.
Source is here to help
Whilst the threshold increase has undoubtedly had a positive impact on homebuyer’s options, there has also been an increase in pressure for brokers in the property industry to meet their customer’s demands. As always, Source is here to support you with your business and help you to make the most of your General Insurance offering. Your Regional Sales Manager (RSM) and Broker Support Agent (BSA) will be on hand during this extraordinarily busy period to provide expert support and guidance.
- The Source quotation platform will give you access to whole-of-market cover, from leading UK insurers, saving you time by quoting for all requirements in one place.
- Our in-house referrals team can help place those cases that fall outside of the standard and can often approve a policy without having to go to the insurer.
- Your customer will also receive legal cover, as standard, for every policy placed with Source.
- With the Source commission guarantee, you’ll earn commission income for every policy you place and for every year your customer renews with the Source panel, even if you retire or leave the industry.
Complete a quote with Source to secure your customer’s home insurance with the right policy for them.
Contact Source today to find out more.