The Future of Stamp Duty - Granite Building Warranties

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The Future of Stamp Duty

Image Source: https://www.yorkshirepost.co.uk/

Following the budget last Wednesday, an extension to the Stamp Duty holiday was announced. It will continue for a further three months, until the end of June 2021. This will enable buyers more time to complete their sales and potentially save up to £15,000 on Stamp Duty Land Tax.

In order to prevent the ‘cliff edge’ scenario, a tapered scheme will come into effect until the end of September 2021; for properties up to the value of £250,000.  After this, the duty will return to the original threshold of £125,000.

Approximately three quarters of a million house purchasers will have saved themselves the tax by the end of the scheme. This has prompted a small, short term property boom.

According to Zoopla, the majority of these purchases were under £500,000. Therefore, no Stamp Duty will have been payable, saving an average of £4,660 per sale, or a collective £2.8 billion.

The Centre for Policy Studies (CPS) is calling on the Government to either permanently increase the stamp duty threshold to £500,000 (at a cost of £3 billion to the Government) or abolish it altogether. The latter is a highly unlikely scenario!

But for many, the continuation of the stamp duty holiday, along with the anticipated introduction of the 95% mortgage scheme, should help to provide a lifeline for the housing market. It is expected this will keep property prices buoyant in the short to medium term.

 

For further information please contact Ed or Kelly on 01284 365345 or email ed@granitebw.co.uk / kelly@granitebw.co.uk.

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