Earlier this year the Government changed the nil band rate for Stamp Duty, for property purchased,  from £125,000 up to £175,000.

However, this is only a temporary measure with the concession expiring at the end of 2009. To qualify for the savings buyers must complete their property purchasers before 31 December 2009.

Purchasers can save between £1,250 and £1,750 if they complete before the deadline date. While a saving of between £1,250 and £1,750 may appear small, in the context of a much larger purchase price, this still represents a considerable saving for any purchaser.

With deals taking on average three months to complete, time is running out before the end of December and therefore it is up to all parts of the chain to ensure the process works as efficiently as possible.

Advisers at 1 STOP Financial Services are at the centre of the transaction and will help encourage all others be they the client, estate agent, lender or solicitor to work at their optimum level to ensure the purchaser can benefit from this Stamp Duty saving.

Potential purchasers who may be considering buying should be take into account the advantages of completing before the end of the year.

By comparison, those with a 40% deposit have seen a 1.86% reduction in the average mortgage rate.

Borrowers with a 10% deposit taking out a new two year deal on a £150,000 mortgage will only see their monthly repayment fall £11 from £988 to £977, while those with a 40% deposit see a reduction of £165 per month from £998 to £833.

Michelle Slade, spokesperson at Moneyfacts.co.uk, commented: “A higher margin for risk is expected on a 90% LTV deal, but a 4.25% margin over the cost of funding seems excessive and difficult to justify.

“Sub-two percent rates are being advertised by lenders, but we have no way of knowing how many borrowers actually qualify for these deals. Having been tempted through the door, many are likely to be offered much higher rates.

“First time buyers, once seemingly the lifeblood of the property market are now apparently being ignored as lenders continue to cherry pick lower risk borrowers.

“It appears borrowers searching out a new deal are paying a higher price to subsidise existing customers, many of which are paying record low rates.”

Contact 1 Stop Financial Services were one of our advisers can discuss your options and guide you in the right direction.

According to Rightmove’s September House Price Index, the average asking prices for property is rising and the market is seeing its lowest stock levels for 18 months, with 10 properties coming off the market for every 8 coming on.
The onset of the Autumn moving season sees new sellers asking an average 0.6% more for their properties. Rightmove has also recorded the lowest average stock levels per branch for 18 months, with 29% more properties coming off the market than coming to the market. The lack of choice in popular areas and high deposit requirements are combining to deter existing home owners from taking advantage of more buoyant market conditions to trade up.

Miles Shipside, commercial director of Rightmove, comments: “There’s an Autumn window for new sellers where a sensible asking price combined with this better market could get you traded up into your next home before Christmas. Some would-be sellers may be concerned by the limited choice of suitable property currently available, and will have to decide whether to take a chance on finding something fresh to the market after they have found a buyer.

This increases the risk and stress of moving, but with choice getting increasingly limited in popular areas they need to have a buyer lined up to improve their chances of securing their next home”.

The brisker market continues to erode stock levels as sold or withdrawn property is removed from the, market. One agent’s summary of trading conditions in August was: “Sales awesome, new listings dreadful”.

New seller numbers are averaging around 23,000 a week, giving a run rate of around 1.2 million a year. Historic figures from Rightmove show that potential buyers have previously enjoyed a choice from around 2 million properties a year. With 151,591 properties measured as coming off the market this month, it is easy to see why property scarcity in popular areas is underpinning price levels.