28th July 2021
The pandemic and subsequent lockdowns has made people reassess where they live, their affordability and living arrangements. This coupled with the tempting break on Stamp Duty Land Tax (the tax payable when purchasing property in England) led to soaring volumes of people moving house and investing in property.
A zero Stamp Duty Land Tax period was put in place last year to help boost the property market and this was later extended until 30 June 2021.
The ‘holiday’ saw an estimated 1.3 million people pay no tax on properties under £500,000 but also saw house prices rise by £16,000 since last July.
The property market was saturated with buyers, which did cause a shortage of suitable homes for would-be buyers with properties selling very quickly. But all is not lost. Those looking to purchase a home under £250,000 can still benefit from paying zero Stamp Duty Land Tax until 30 September 2021 as the scheme tapers off, allowing more time to find a new home.
Some new home builders and developers are even offering to pay for people’s stamp duty who have narrowly missed the deadline in order to secure buyers.
From October first-time buyers could regain some competitive advantage as non-first-time buyers may drop out of the market altogether.
Of course, those who are still wanting to move house or buy a property over £250,000 can continue and will benefit from the relief given up to the value of the £250,000 threshold.
We could potentially see house prices level out or drop back to previous levels before the scheme was introduced and demand soared.
From 1 October the Stamp Duty Land Tax threshold will revert to £125,000.
If you are looking to move or buy a property, please get in touch with our dedicated Property Law Team who can discuss your requirements and provide you with an estimate.
Call us on 01256 844888, email email@example.com or speak to our online chat assistant who can take all the details of your transaction and arrange for an estimate to be prepared.
Our team can also provide legal advice and services in relation to property sales, land sales and purchases, transfers of equity, independent legal advice, staircasing, ID1 forms and re-mortgages.
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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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