In Rishi Sunak’s 2021 budget update, one of the key announcements was the extension of the stamp duty tax holiday. This allows property buyers to benefit from 0% stamp duty on sales up to £500K until the end of June. The aim being to gradually transition back to the standard stamp duty rates by October 2021.
- Until end of June – 0% Stamp duty on sales up to £500K
- 1st July to end of September – 0% Stamp duty on sales up to £250K
- From 1st October – 0% Stamp duty on sales up to £125K
Why the need to extend the stamp duty holiday?
There are 2 main reasons why…
- As a result of Covid-19, the process of listing a property and completing the sale takes far longer than it did previously. Based on data provided by Rightmove, it takes an average of 65 days to get an offer accepted once a property has been listed for sale. With conveyancers, mortgage brokers, solicitors and councils working from home, it takes a further 126 days on average to complete the purchase.
- The extension will help to entice those who were looking to drop out of their property purchases due to fear of missing the previous deadline (31st March). With roughly 600K people currently in the process of buying a property, approx 1 in 5 people were considering abandoning the purchase out of fear of missing the previous deadline.
Extending the stamp duty holiday gives buyers a much needed lifeline. It also allows tens of thousands of people to make savings of up to £15K on their property purchase. If you are looking to buy a property and benefit from the extended stamp duty holiday, contact us today! We have a team of solicitors and mortgage brokers that can help you meet the end of June deadline!
Trevlyn Properties Team