Many would agree that the biggest talking point in the property and mortgage market at the moment is, will the stamp duty holiday be extended ?
For those of you that aren’t aware, Stamp Duty is a tax which is paid when purchasing a property in the UK. The amount you pay is based on the purchase price of the property. You may also have to pay an additional charge if you own more than one property or you’re buying the property under a limited company.
From 8 July 2020, the government introduced a temporary holiday on stamp duty, which reduced the tax threshold for anyone buying a residential property in the UK.
This led to a surge in the property market after the industry was mostly put on hold during the beginning of the pandemic. The average property value in the UK has now grown to £249,633 based on the UK House Price Index. An annual price rise of 7.6%.
Now with the stamp duty holiday coming to an end on 31 March 2021 and the UK still in lockdown, there is growing pressure on the government to extend the stamp duty holiday or even make it permanent.
There are concerns that if the stamp duty holiday comes to an end, it could lead to a housing slump and may delay the economic recovery after the lockdown eases.
The stamp duty holiday extension will be debated in the House of Commons on 1 February 2021. If there is an extension, it could be announced in Chancellor Rishi Sunak’s 3 March 2021 Budget.
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