In yesterday’s Spring Budget 2021 (Wednesday 3rd March 2021), Chancellor Rishi Sunak announced the next stage of the UK Covid response, covering the Government’s guidance on furlough schemes, tax rises, and the stamp duty holiday’s approaching deadline.
In today’s announcement, Rishi confirmed a three-month extension of the stamp duty holiday as part of the next stage of the UK Covid response. This means any property purchase of up to £500,000 will continue to be free from tax until 30th June. After this deadline, any homes brought up to a value of £250,000 can benefit from the stamp duty holiday until the end of September 2021.
With this in mind, Rightmove has estimated that this extension could mean an additional 300,000 sales that England’s property market can benefit from – Further meaning that buyers could save £1.75bn in tax.
Peter Lane & Partners is pleased to hear the Government has responded positively to an industry-driven campaign. This is good news for the property market and all those looking to get on the property ladder in 2021.
But what does this mean for homebuyers?
Currently, many couples and families have been left under pressure to complete their transactions before March 31st, otherwise, they would be left with a £15,000 tax bill. So this is a huge relief for anyone who unfortunately wasn’t going to reach this deadline.
The introduction of the stamp duty holiday in July 2020 came amid a collapse in the housing market after most home sales were stopped or prevented due to national lockdowns and the worry of coronavirus.
As a result of this, the stamp duty holiday has been a huge success, especially for those who originally planned to move home in 2020 or 2021 with high hopes. The property market faced a huge “boom” since then, with more mortgages approved in 2020 than in 2019. This boom was highly likely caused by people spending more time at home – realising they need more space outside or inside, another room for working from home or even encouraging them to start a new chapter in their life when restrictions were eased.
For homebuyers, this stamp duty holiday extension and new mortgage scheme are ideal for first-time buyers, those who can’t afford more than a 5% deposit, and those who are anticipating the value of their properties rising further.
This is good news for the property market and all those looking to get on the property ladder in 2021. Make that move at Peter Lane & Partners with our trusted, knowledgeable team of estate agents to take advantage of this extension.