How Effective Was The Stamp Duty Holiday?
The stamp duty holiday is over, so it’s as good a time as any to look back at the impact that the tax break has had. Over the last few months, we’ve tracked the progress and results in our blog including the ‘extension‘ and what buyers needed to do to benefit.
The objective was to open up the market to more buyers and get them on the property ladder. There’s probably a case to say that the housing market was really saved from a dire situation. But just how effective was the stamp duty holiday?
How it all began
By the middle of March 2020, the UK was plunged into its first lockdown. A lot of questions were left unanswered in terms of work arrangements, education systems and the housing market.
With people being forced out of work due to being unable to continue effectively from home and with people being made redundant, the government set up the furlough scheme which ended recently.
This ultimately saved businesses and their staff alike from total collapse by offering a part government, part workplace paid salary for employees.
The housing market however was left a sinking ship amidst the chaos the pandemic.
Being one of the highest grossing revenues averaging £11 billion the past 5 years from stamp duty alone, something needed to be done, and fast.
The start of something good
By July 2020, the one year stamp duty holiday was put in place to aid homebuyers and allowing the housing market to remain open during such a tough time.
The holiday, in short, allowed homebuyers to be relieved of tax up the the price of £500,000. Previously, this was proportionate to the value of the property. With such a huge window of opportunity for the population, the market boomed.
Agents were able to provide virtual tours of properties to ensure that social distancing measures were still being followed.
Solicitors had a constant flow of work and completions of people wanting to move home as quickly as possible.
Mortgage providers were broadening their loan brackets to cater for the influx of buyers and removals companies were relishing in the amount of work provided by the latter.
This quick implementation from the government allowed so many people to continue working, kept the economy ticking and thus left a huge stamp on the pandemic by removing the stamp duty from the homebuyers conscious.
With this change in place, the UK saw over one million properties sold by the end of 2020.
The light at the end of the tunnel
As July 2021 approached the Stamp Duty Holiday was not scrapped, however it was altered to only cater for more specific transactions.
Those who were completing on their moves prior to this date were allowed to reap the initial benefits.
And the housing market still remains active. Every party involved such as estate agents, solicitors, mortgage brokers and removals companies alike have revelled in the spectacle that was the boom of the housing market.
CBS Removals remained active over the pandemic and continues to work hard to provide a bespoke service for all those who are looking to finish their moves. If you would like more information, click here to see how we can help. Call us on 01480 220434 or email firstname.lastname@example.org.