Sunak to extend stamp duty holiday to June – what does this mean for you?
Rishi Sunak is preparing to extend the stamp duty holiday by three months until the end of June, The Times has reported. What does this mean for property buyers and sellers in the coming months?
Rightmove recently estimated that 100,000 people could face an unexpected stamp duty bill amid delays in the home buying and selling process due to social distancing measures, illness and home-schooling. The chancellor had been urged to push back the deadline as many people have been left scrambling to complete their transactions before the end date.
Under the current rules, announced by the Treasury last year in a bid to fire up the property market, the stamp duty threshold has been temporarily raised from £125,000 to £500,000 for property sales in England and Northern Ireland. This means buyers and investors can save up to £15,000 on their property purchase.
The holiday appears to have had a positive impact on the housing market, with think tank the Centre for Policy Studies reporting house sales had increased to their highest level since before the 2007 financial crisis.
Some 129,400 transactions went through in the UK in December, compared with 87,040 in 2014, according to provisional figures from HM Revenue & Customs. Rightmove also reported the average number of days it took to sell a property fell to 49 in November, compared with 67 a year earlier.
**A spokesperson for the Treasury has said they cannot speculate on tax ahead of fiscal events.
We predict another boost in the property market as buyers now rush to take advantage of the extension. This means there’s really no better time to get your home on the market if you’re considering selling in 2021.
For a first step, you can get a valuation on your home HERE. Or please get in contact with us for expert advice on moving forwards by filling in the form on this page.