Earlier this month Chancellor Rishi Sunak announced that the government’s stamp duty holiday (England and Northern Ireland) will last until the end of June 2021; its previous end-date was March 31. This is great news for buyers and sellers who were in a rush to compete their property transactions before the old deadline and save up to £15,000.
More about the stamp duty holiday
The government introduced the holiday last July in a bid to keep the property market moving along despite the covid-19 pandemic. The holiday meant that buyers paid no stamp duty on transactions up to £500,000. This initiative worked very well, with buying and selling remaining buoyant.
The good news is that the holiday is now going to last for a further three months, up until the end of June. There’ll also be a softer ending to the holiday, with the nil rate band for stamp duty doubling to £250,000 until the end of September.
In Scotland however, the Land & Buildings Transaction reductions seem set to end at the end of March, although Wales has decided to extend its Land Transaction Tax reductions up until the end of June.
Are there significant delays in the property marketplace?
Last July’s stamp duty holiday announcement caused a big rush as buyers brought forward their moving plans in the hope of saving several thousand pounds in stamp duty.
According to property portal RightMove’s research, this rush, combined with many conveyancers and solicitors working from home, has led to some delays. On average it’s taking six months, rather than the usual three or four, to complete a sale or purchase. However, if you’re a cash buyer or you can get your paperwork in order before you decide to sell or buy, then you could compete within a pre-pandemic timeframe.
Thousands of house-hunters and vendors will benefit from the extension
Buyers and sellers already in the funnel will welcome the extension, especially if their transaction is taking longer than usual because of covid-19 restrictions.
House-movers who are in a good position to proceed apace may also benefit from the extension as long as they’re confident they can complete before June 30. If their purchase is between £125,000 and £250,000, then they’ll also have the cushion of paying no stamp duty up until September 30.
