The current stamp duty holiday has been extended in England, Northern Ireland and Wales.
In his Spring Budget announcement for 2021, Chancellor Rishi Sunak (pictured) has confirmed that the stamp duty holiday will be extended until 30 June. This is an extension beyond the original deadline of 31 March.
Temporary thresholds will remain until 30 June under new reforms
The tax break introduced in July last year, has brought a flurry of activity to the property market, with home movers buoyed by the prospect of saving up to £15,000. This rise in demand has resulted in significant delays to the home buying process, and the Chancellor has now moved to extend the relief for longer to prevent hundreds of thousands of moves falling through.
The industry has continuously drawn attention to the danger of a cliff-edge when the measure comes to an end on 31 March 2021, with backlogs across the property sector causing many transactions to face falling through if unable to complete in time.
Sunak said: “The cut in stamp duty has helped hundreds of thousands of people in buying a home.
“Due to the sheer volume of transactions, many new purchases won’t complete in time for the end of March.”
The stamp duty holiday has caused delays within the property transaction process.
Michelle Andrews, head of buying a home at HSBC UK, said: “The temporary relief of Stamp Duty Land Tax has made a real difference to customers and the mortgage markets during this very challenging time.
“We welcome the extension of the temporary relief and believe it will help continue to give opportunities to more customers to achieve their dream of owning or moving home as well as keeping momentum in the housing and mortgages markets.”
95 per cent mortgage
The extension of the Stamp Duty Holiday in England until the end of June is welcomed, as is a zero per cent SDLT levy on properties up to £250,000 until the end of September 2021. A new government-backed mortgage guarantee scheme is set to launch on 1 April across the UK. The scheme will be available to those seeking to purchase up to £600,000 and will support purchasers who require a 95 per cent mortgage. Unlike many schemes, support will be available to all purchasers and not restricted to first-time buyers or new build homes.
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