8th July 2020
The UK property market took a hard hit from the Covid-19 pandemic. Lockdown impacted on house moves, viewings and building – some professional services were limited or closed completely.
Lamb Brooks have certainly seen the market swing back into action over the last month with people eager to get moving or press on with their property purchases. Local estate agents have been busy with people keen to get ‘for sale’ boards up, restoring faith in the property market locally.
This is promising news and the announcements in today’s mini budget held in the House of Commons further brightens the horizon. Property buyers will be pleased to hear that Chancellor Rishi Sunak announced a Stamp Duty Land Tax Holiday that will run until 31 March 2021.
The announcement means that property purchasers will not have to pay stamp duty land tax on homes up to the value of £500,000. This could save many thousands of pounds in upfront costs when moving to a new house or buying their first property.
The average stamp duty land tax bill will fall by £4,500 – which is a very welcome saving when moving house. It is estimated that 9/10 people buying a home this year will benefit from paying zero stamp duty land tax.
Those buying their first home were already benefiting from relief of stamp duty land tax on properties up to the value of £300,000, however this latest announcement means that first-time-buyers could purchase a more expensive home and still benefit from the perks of being stamp duty land tax exempt. This will be welcomed by those looking at houses just over the £300,000 price point.
A first-time-buyer could potentially save £10,000 purchasing a £500,000 property under the new rules.
Those selling a property around the £500,000 price point may need to speak to their estate agent and consider whether they will be pricing themselves out of the market by creeping slightly over the £500,000 mark. However, this is a temporary measure so house prices should not be impacted in the long run.
If you have any questions on stamp duty land tax or would like an estimate for conveyancing work please contact our dedicated Property Law Team on 01256 844888 or email firstname.lastname@example.org
Our team are in the office ready to take your queries and look forward to being a part of your property journey.
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The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice. The law may have changed since this article was published. Readers should not act on the basis of the information included and should take appropriate professional advice upon their own particular circumstances.
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