The ‘New’ Stamp Duty Holiday Explained
The stamp duty holiday is now over in its original form. It was originally due to run until March 31st, but was extended to the end of June. Under the stamp duty holiday, buyers did not have to pay tax on houses worth up to £500,000. The idea was to boost a flagging property market.
And the holiday has had the desired effect, according to experts. But has the holiday really finished? Did you know there is effectively a fresh stamp duty holiday extension.
What’s in it for us?
“The stamp duty extension to September has not been massively publicised, but it’s down to estate agents to educate the public,” explains property expert Paul Blake. “Ultimately, it means you don’t have to pay stamp duty on a property up to £250,000 and for properties over that, you have to pay stamp duty as applicable.
“It means that people might be able to afford homes more than they did before. It also means a handsome saving for some, but I think the original stamp duty holiday which ended in June was where most money was saved.”
But the £250,000 cap will only benefit existing homeowners who want to move to a house worth less than £250,000. So it’s not fantastic news for first time buyers looking at getting on the property ladder.
“The biggest thing we’ve had to deal with as an agent was the number of transactions,” Paul adds. “Buyers have jumped on board and saved that money. When we’ve talked to people about their motivation, we have some people that just want to get their sale through.
“But most people when they started their search, especially last November or December, specifically said they wanted to get it through before the stamp duty holiday ended.”
How long have we got?
Anyone looking to benefit from the so-called new extension needs to make their purchase between now and 30th September. And on 1st October, the rates will return to normal with the ‘nil band’ returning to £125,000. Handily, the government has a stamp duty calculator on its website to help us work out what we pay.
As for what the market will look like for the rest of the year? Paul predicts that things are calming down.
“On average, you have 60/40 split of properties that are available and under offer, but it’s more like 40/60 with us. But it has now gone quiet and we can expect to see a ‘normal’ market again at the tail end of the year.”
And when you’re ready to move, give CBS Removals a call. Book us today on 01480 220434 or email firstname.lastname@example.org.
Paul Blake is a Senior Property Consultant at Thomas Morris Sales & Lettings based in St Ives, Cambridgeshire.