Home LifestyleHome improvements £11.3bn of Stamp Duty savings to be spent on home improvements

£11.3bn of Stamp Duty savings to be spent on home improvements

by LLP Finance Reporter
26th Aug 20 10:52 am

Over the next few months it looks like much of the UK is going to be on the move as 14% of Brits admit they are looking to purchase a property, or have already done so.

Following Chancellor Rishi Sunak’s announcement of a temporary Stamp Duty Holiday in June. Overall, potential home movers expect to save £38.1bn nationally – an average of £5,219 individually.

A third (33%) of buyers plan to straightaway spend the ‘extra’ cash on home improvements and renovations, with £11.3bn being reinvested nationally, an average of £4,734 each on making the house feel like a home.

Kitchens (40%) and bathrooms (30%) take top billing but the recent relative importance of outside space is clear with almost a quarter (24%) keen to spruce up the garden, 18% planning a new patio or outdoor dining space and more than one in ten (11%) with eyes on an outdoor workspace. Plus, not content with the more classic renovations, many are also willing to splash the cash on wow features such as a cinema (12%) or swimming pool (11%).

Not only that, but three in five (59%) said they’d be more likely to buy a ‘doer upper’ as they’d have more to spend on putting their own stamp on a project purchase, meaning a buying boost to a broader range of property types.

With demand for new homes rising across the UK, Jamie Scotto, 35, working in HR at a charity in London, is a first-time buyer who is in the process of buying a new flat and has saved approximately £5,000 thanks to the stamp duty holiday.

Scotto said, “The stamp duty holiday has come at the ideal time for me as a first-time buyer. We were thinking we’d have to wait quite a while to get started on any home improvements as we’d maxed out our budget on buying the house. So it feels like such a win to know we have some extra cash available and can get cracking on immediately making our house our home. We’re going to totally revamp the bathroom but then I’m hoping we might also be able to replace the boiler ahead of the Winter too.”

Top 10 things house renovators plan to splash the saved cash on:

  1. New kitchen – 40%
  2. New bathroom – 30%
  3. Living room – 27%
  4. Garden – 24%
  5. Patio / outdoor entertaining space – 18%
  6. Dining room – 12%
  7. Loft conversion – 12%
  8. Cinema / home entertainment / games room – 12%
  9. Indoor workspace – 12%
  10. Outdoor workspace / swimming pool – 11%

Mike Fairman, CEO of Checkatrade added, “Savvy Brits are clearly planning to make the most of the stamp duty holiday with many buyers already planning to reinvest the money saved back into their homes. From unlocking the potential to take on a project through to giving buyers the means to immediately make their mark on their new pad, it’s great news for both would-be new home-owners and tradespeople alike.

“To help Britain’s buyers plan how to spend their stamp duty savings, Checkatrade has created a series of simple guides to give homeowners a helping hand including ones on, kitchen fittings, loft conversions and bathroom installations. They each provide an idea of average costs and turnaround times when you’re getting the professionals in to perfect your new place.”

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