3rd March 2021
Some good news for home buyers came out of Rishi Sunak’s Budget announcement today with the extension of the current stamp duty land tax holiday.
The zero-stamp duty land tax period, which was put in place last year to help aid the property market after it came to a halt in the first lockdown, was due to finish on 31 March 2021. This has now been extended until 30 June.
The extension will be welcomed by home-buyers who were nervously waiting to exchange before the end of March or those who have suffered delays in their chain. It will also give some hope to those who wanted to take advantage of the stamp duty land tax holiday but are yet to find a property or have an offer accepted.
The scheme essentially scraps stamp duty land tax on the first £500,000 of a property provided it is not an additional property. Someone purchasing such a property under £500,000 will pay zero in stamp duty land tax and those purchasing properties above the £500,000 threshold will just pay tax at 5% on the additional amount or 8% for those buying an additional property which is not their main residence.
The transaction would need to complete by 30 June 2021.
To ease an abrupt end to the stamp duty land tax holiday, the nil rate band will increase to £250,000 until September 2021 and revert to the usual £125,000 on 1 October 2021.
This will mean that buyers purchasing smaller or lower-value homes can still benefit from the zero stamp duty land tax for months to come.
The Government will also be offering some support to those with smaller deposits by introducing a mortgage guarantee scheme with a return to 95% mortgages and incentives for lenders who agree lending to those with a 5% deposit.
If you are looking to take advantage of the extension and require an Estimate for conveyancing, please get in touch with our Property Law Team on 01256 844888, email email@example.com or speak to our online chat service.
The property market is still extremely busy with the surge of demand. It is recommended to obtain an Estimate once you have had an offer accepted and a mortgage decision in principle. It is also useful to have all the property details to hand so that our team can respond with a prompt estimate for you.
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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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