The extension of the stamp duty holiday comes as a huge boost for those looking to sell their home or buy a new one.
In his Spring Budget, Rishi Sunak revealed a number of new measures designed to aid recovery following the Covid-19 pandemic.
And estate agents in Plymouth were thrilled to hear that the Government’s plans include more support for the property market.
Alongside a new mortgage guarantee scheme, the Chancellor also confirmed that the temporary stamp duty holiday in England and Northern Ireland has been extended until June 2021.
The announcement will come as a huge relief to homebuyers who were hoping to take advantage of the holiday but were worried about missing the original March 31st deadline.
With a sharp rise in buyer demand across Plymouth, this extension allows more time to complete your transaction and potentially save thousands of pounds on stamp duty.
Here’s what the stamp duty extension means for those looking to buy or sell a home in the city and surrounding areas.
What is stamp duty when buying a property?
If you buy a home in England or Northern Ireland, you are required to pay Stamp Duty Land Tax (SDLT).
There are several rate bands, and the SDLT is calculated on the part of the property purchase price falling within each band.
You will also pay different rates depending on whether you’re a mover, a first-time buyer, or are buying a buy-to-let property, a second home or a holiday home.
Check out our comprehensive guide to finding your new home here.
What is the stamp duty holiday?
In July 2020, the Government pledged more support to the property industry as part of their aim to secure economic recovery.
The Chancellor announced a temporary and immediate holiday on Stamp Duty on properties up to half-a-million pounds.
That means buyers currently do not pay Stamp Duty Land Tax (SDLT) on the first £500,000 of all property sales in England and Northern Ireland.
What changes have been made to the stamp duty holiday?
Until the Spring Budget, the stamp duty holiday was only in effect up to and including March 31st, 2021.
However, the Chancellor’s announcement means the stamp duty holiday has now been extended until June 30th for the £500,000 nil rate band.
Mr Sunak said: “The cut in stamp duty I announced last summer has helped hundreds of thousands of people buy a home and supported the economy at a critical time.
“But due to the sheer volume of transactions we’re seeing, many new purchases won’t complete in time for the end of March.
“To smooth the transition back to normal, the nil-rate band will be £250,000 – double its standard level – until the end of September and we will only return to the usual level of £125,000 from October 1st.”
More information is available on the Gov.uk website here.
What are the benefits of the stamp duty holiday?
The scheme has already pushed down the average SDLT bill by some £4,500 since it was implemented last year.
Those buying a property of half-a million or more have saved as much as £15,000.
And it is estimated that around nine out of 10 main-home buyers have been paying no SDLT at all.
Is now a good time to sell my home?
Now is the perfect time to sell your home, with the Stamp Duty Land Tax (SDLT) holiday now in effect until June 2021.
The main problem at the moment is a lack of housing stock in Plymouth and the surrounding areas.
We believe this latest announcement will lead to a surge in people putting their properties on the market.
Sellers prefer buyers who have at the very least have already got their property up for sale. That’s a fact.
Your first step should be to get your current property valued – and Lang Town & Country is here to help.
Book a valuation here.
What do we think of the stamp duty holiday?
James Clarke, our Land & New Homes Director, says: “Any assistance that can be given to property buyers is always welcome.
“Incentives like this give the opportunity for buyers to realise their dream and buy their new property.
“The Chancellor’s latest announcement should assist in keeping an active marketplace.
“Confidence is a huge element in an effective marketplace. We have seen a spike in enquires coming into our network of offices since the stamp duty holiday was implemented last year.
“Our current buyers are delighted with the extension as they now have extra money to keep in savings or treat themselves to something nice for their new home.”
How does the stamp duty holiday benefit landlords?
There is still stamp duty to pay if you are buying an additional property to your main home, but this has greatly reduced.
This means that anyone thinking of becoming a landlord will pay considerably less when buying a property under the threshold to rent out.
Richard Rabin, our Lettings Director, says: “The stamp duty extension means now is a great time to buy for those looking to use property as an investment.
“Although people buying additional properties will still have to pay stamp duty, the new 3% rate on the first £500,000 is lower than it was previously.
“The lettings market is the most buoyant I have ever seen it, with huge demand from tenants – and I don’t see this changing for quite some time.”
