Stamp Duty Holiday Update

News at Howard Independent Estate Agents | 24/02/2021

An article published in The Times today confirms Chancellor Rishi Sunak is preparing to announce an extension to the stamp duty holiday deadline, for a further three months. This will extend the current deadline from 31 March until June 2021

The article, written by a well-connected political editor, does not clarify whether the proposed extension will be for all buyers (current and new), or only for those buyers with a transaction currently progressing through the system.

The news comes following a relentless campaign from industry professionals and economists, backed by approximately 150,000 signatures to an online petition.

Without doubt, the stamp duty holiday provided a welcome boost to the property market since its introduction last summer, which in turn benefitted the economy. It encouraged people to buy homes, and enabled multi-property landlords, both residential and commercial, to expand. In fact, according to new research by Direct Line, around 60 per cent have expanded their portfolio since its introduction.

Although The Times article brings good news about the proposed announcement, some are worried the new extension will only create a new cliff edge in June, leaving new buyers in the same position as current buyers are in now – rushing to meet a deadline. Instead, they feel a 'tapered' extension would be beneficial for both current and new buyers alike.

For now, we can only await the finer details set to be announced on 3^rd March. But on the face of it, this will be very positive news certainly for those buyers who are desperately rushing to meet the 31 March deadline!

Howard Estate Agents