The Stamp Duty Land Tax holiday was launched in July 2020 in order to stimulate the property market. This tax break for homebuyers in England and Northern Ireland - as well as similar relief in Scotland and Wales - was due to finish at the end of March. This created a boost within the market as hoped, but the 'cliff edge' deadline of 31 March 2021 created difficulties for some buyers to complete on their sale and/or purchase within the holiday period due to backlogs and delays throughout the process.
The Chancellor of the Exchequer has now announced that the current stamp duty holiday in England and Northern Ireland will be extended until 30 June.This means that no stamp duty is paid on the first £500,000 of a property purchase until 30 June. After this date, this relief will be reduced to the first £250,000 of a purchase until the end of September, before returning to its pre-pandemic level of £125,000 from 1 October 2021.
This means that the maximum saving for buyers from the start of July until the end of September will be just £2,500 – considerably less than the £15,000 possible saving under the current holiday, which will now continue until the end of June.
It is yet to be seen whether First Time Buyer Relief will be re-introduced at the end of June when the Stamp Duty Holiday comes to an end for the benefit of first time buyers at prices from £250,000 to £500,000, who will otherwise be worse off than before the SDLT holiday.
The chancellor also confirmed that they would be introducing government-guaranteed 95% mortgage loans available from next month. These 5% deposit mortgages are to encourage first time buyers onto the property ladder and will be available on purchases of properties up to the value of £600,000.
If you are looking to buy or sell your home, please give us a call on 020 8771 5254 for a free no obligation quote, or you can use our online quote system by clicking here. Please note that your lawyer cannot guarantee completion by the end of June. Even in normal times, not many purchases are completed in less than three months from initial instruction. Your lawyer will always do their best to avoid unnecessary delay, but the speed of a purchase depends on many factors, some of which your lawyer cannot control.
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