Stamp duty holiday set to be extended- what does this mean for home movers?
Quick Read- It is thought that Rishi Sunak will announce a 3 month extension to the stamp duty holiday in next weeks budget- how will this affect home movers?
What is Rishi Sunak expected to announce?
There has been a lot of anticipation for a possible extension to the stamp duty holiday that was due to end on March 31st 2021. It is thought that in next weeks budget the Chancellor Rishi Sunak will announce that stamp duty will be cut for a further 3 months in a bid to stop thousands of transactions falling through. Reports are circulating that it is more than likely that the stamp duty cut could continue for a further 3 months.
What does this mean for home movers?
This could save home movers thousands in SDLT and stop the many transactions that were agreed on the proviso they were complete prior to the March 31st cut off time from falling through. There are currently up to 100,000 property sales that could miss out on the stamp duty holiday due to delays in the home moving process. Rightmove reports that the average property sale now takes around 4 months, Covid has caused delays in the conveyancing and mortgage application processes. Some home movers who had not expected to meet the deadline but who have transactions already agreed may also benefit from this extension.
I haven't agreed a sale yet, will I qualify?
If the stamp duty holiday is extended for 3 months it is unlikely you will be able to qualify as the average sale time is around 4 months. Whilst not impossible if the circumstances allow, we advise would make sure you have set aside enough funds to pay the stamp duty if you don't make the new deadline. The stamp duty rates prior to the holiday were as follows:
Up to £125,000 Zero
The next £125,000 (the portion from £125,001 to £250,000) 2%
The next £675,000 (the portion from £250,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5 million)10%
The remaining amount (the portion above £1.5 million) 12%
Landlords pay an extra 3% of stamp duty when purchasing a buy-to-let property.
First Time Buyers already benefitted from Stamp Duty relief.
What is the housing market like right now?
The housing market is buoyant, here at Lesley Hooks we have seen record numbers of new listings and sales agreed over the past year. Property prices are currently holding up very well and have increased since this time last year. The stamp duty tax cut was due to end on March 31st and even with that news the market was not slowing down despite new home movers not being able to benefit, it is therefore thought we will continue with high levels of activity.
The official announcement is due in next weeks budget... we will continue to provide updates as and when we get them.
If you are thinking of moving or want some advice regarding the Stamp Duty changes then get in contact with us.
Email: lesley@lesleyhooks.co.uk
Tel: 0151 644 6000 (Bebington) 0151 334 5875 (Bromborough)
Whatsapp (Messages Only): 07538771198
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Follow this link to arrange a free no obligation valuation: https://www.lesleyhooks.co.uk/valuations.htm