Published: 17/02/2021 By Donna CowanThe impact of the stamp duty holiday
The stamp duty holiday extension came into effect 8 July 2020 and is set to end on 31 March 2021. Since then, the property market has been booming. The sector has seen unprecedented levels of demand and has boosted the economy throughout the COVID-19 pandemic.
With the stamp duty holiday deadline approaching, the property market is starting to feel the effects already. Data from Nationwide reveals annual house price growth has slowed for the first time in the past six months.
Recent research by The Guild of Property Professionals reveals 31% of buyers are very likely to cancel their planned moves if they end up having to pay stamp duty. And a further 43% admitted they would most likely do the same.
Nitesh Patel, strategic economist at Yorkshire Building Society, said: "The market has been stimulated partly by buyers re-evaluating their housing needs, particularly for larger homes with access to green space, but Stamp Duty relief, which has potentially helped buyers make significant savings on their purchases, has been the biggest driver in housing activity.
"However, there's a risk that many would-be buyers have agreed sales which may not complete in time to benefit from the tax relief.
With house purchases taking much longer due to Covid restrictions, solicitors and mortgage advisers say they are struggling to meet the deadline.
However, Rishi Sunak is considering a six-week extension to the 31st March Stamp Duty holiday deadline. This would mean buyers and sellers would have until the 12th May to get their deals to completion.
If you would like to discuss the impact that the stamp duty holiday may have on you with a professional, please contact;
Greenwood Property Consultants, Essex House, 42 Crouch Street, CO3 3HH, www.greenwoodpc.co.uk, Tel: 01206 616 820