What is the stamp duty holiday and what does it mean for you?As Chancellor Rishi Sunak confirms the introduction of a new stamp duty ‘holiday’ on homes up to £500,000, we take a look at everything you need to know about the scheme and what it means for you as a homebuyer or seller.
The announcement, which was confirmed on Wednesday 8th July, means that home buyers will not pay stamp duty on homes costing up to £500,000 in a bid to boost the industry. Put simply, it could help you save thousands of pounds when purchasing your next home.
What is a stamp duty holiday?So far, we’ve seen a ban on new evictions, as well as mortgage holidays, allowing struggling homeowners to take a break from mortgage payments.
Stamp duty is a tax levied on any property over £125,000 in England or Northern Ireland, and is calculated depending on which price bracket the property falls within. The new stamp duty holiday means you no longer have to pay this tax, and comes into effect immediately, running until March 31st 2021.
What does the stamp duty holiday mean for me?If you’re a prospective homebuyer, this could mean significant savings! According to data from Rightmove, the average price of a property sold in the South East last year was £348,972. On a house of this value, you can expect to save £7,448.60 on stamp duty.
As the new scheme is in place for properties up to the value of £500,000, that means you could save as much as £15,000 on stamp duty.
This means it’s the ideal time to buy. Get in touch with us to find out how much you can save!
It’s also good news for sellers, as it will make the prospect of buying a new home much more appealing. In fact, Rishi Sunak explained in the announcement the motivation behind the movement that “we need people to feel confident, confident to buy, sell, move and improve.”
So, if you’ve been considering putting your home on the market, now is a great time!
What does it mean for the industry?The easing of lockdown rules over property viewings and valuations helped get the industry moving again, and scrapping stamp duty should provide an extra incentive for those considering moving or selling. Those who might have been considering postponing until next year, may now reconsider.
It’s significant, and welcome, news, that will affect all areas of the sector.
If you're looking to take advantage of this stamp duty holiday, we're here to help. Contact your local branch by clicking here.