According to media reports, the stamp duty holiday will continue until the end of June. This decision will be part of the Budget in early March.
The Times has reported Chancellor Rishi Sunak will extend the holiday by three months. There has been considerable pressure placed on the Government to move the deadline back to ensure hundreds of thousands of property buyers don’t miss out on significant savings.
Since last summer, the stamp duty threshold increased from £125,000 to £500,000 for property sales in England and Northern Ireland. Scotland and Wales have benefitted from similar, yet with different threshold levels, in their property market.
Many buyers have benefitted from the stamp duty holiday
Most observers would agree the stamp duty holiday has had a positive impact on the property market. The Centre for Policy Studies reported house sales had reached their highest level since before the financial crisis of 2007.
In December 2021, according to figures provided by HM Revenue & Customs, buyers completed a total of 129,400 property transactions. This number compares strongly with 2014’s figures, which stood at 87,040.
As we advance, it is likely there will be calls for the stamp duty holiday threshold to be made permanent or for stamp duty to be removed entirely, at least for people buying their primary residence. The Centre for Policy Studies is leading this, and it is a movement that will likely gain traction.
Will the stamp duty holiday remain in place?
Jethro Elsden is a data analyst for the think tank, and he has said that removing the stamp duty holiday would be a “sledgehammer blow to the housing market”.
There has been no official comment from the Treasury, with a spokesperson saying they cannot speculate on tax ahead of fiscal events
Guy Harrington, CEO of residential lender Glenhawk, commented: “Whilst a short extension was inevitable given the backlog of transactions, stamp duty has been a strong revenue generator for the government and at a time when it can ill afford to be bleeding money, this is not a long-term solution.”
Guy continued by saying; “As with Help to Buy, a tapering of sorts would ensure that the relief continues to benefit those most in need, whilst avoiding a situation similar to after the first lockdown where transactions fell by as much as 50%. A housing market correction would only further add to the already considerable economic woes facing UK consumers.”
The Times has also reported that the furlough scheme is also set to be extended for an additional three months. This scheme was set to conclude at the end of April, but extra time will hopefully assist businesses and employees to better manage their finances over the coming months.
We offer property management, property to rent and property for sale in Arnold, Woodthorpe, West Bridgford, Hucknall, Carlton, Wilford, Mapperley and throughout the Nottingham area. If you would like to arrange an appointment to help you negotiate the local buy-to-let market, please contact Holdencopley today by calling us on 01158969800 or emailing steven@holdencopley.co.uk.