Significant Stamp Duty Land Tax (SDLT) changes are due to come into effect at the end of the month. But now is still a fantastic time to buy and sell property.
That’s the message from estate agents in Plymouth, who are preparing for the end of the extended holiday in England and Northern Ireland on June 30th.
For the last 11 months, first-time buyers and movers have paid no stamp duty on homes priced at or below £500,000.
From July 1st, that threshold will be lowered from £500,000 to £250,000 until the end of September.
Then, from October 1st, it will return to £125,000.
How will stamp duty holiday changes affect Plymouth house-hunters?
Paul Preen, Managing Director of Lang Town & Country, says: “Even with the changes to stamp duty, house-hunters still won’t have to pay anything up to £250,000 before the end of September, which still represents a £2,500 saving.
“First-time buyers still don’t have to pay anything up to £300,000 anyway so these changes will not really affect them.
“We’re still seeing really strong demand, not just from out of area purchasers but also local buyers.
“Transactions were up on average 30% from January to June 2021, compared to the same period in 2019*.
“If you haven’t had your property valued in the last 12 months, get in touch with us today for a free valuation.
“The figures have changed significantly, and you may now be able to achieve more for your property. This means you could afford to spend more on your next home.
“And if you are a landlord, speak to your rental agent – or us if you haven’t yet got one – as rents have greatly increased during the last 12 months, meaning you could be getting more from your property.
“The lettings market is the most buoyant we have ever seen it, with huge demand from tenants – and we don’t see this changing for quite some time.”
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 saw the stamp duty holiday 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.
How do I get in touch with Lang Town & Country?
Please do contact us and we’ll be more than happy to offer advice and a free valuation of your home.
Plymouth Sales – 01752 256000 / Property@langtownandcountry.com
Plymstock Sales – 01752 456000 / Plymstockoffice@langtownandcountry.com
Waterside Office – 01752 200909 / Waterside@langtownandcountry.com
Lettings – 01752 201010 / email@example.com
Land & New Homes – 01752 278499 / firstname.lastname@example.org
You can also get in touch if you have concerns about your property move or want reassurance on how we can do this while keeping you, our staff and the NHS safe.
We’ve also put together a handy guide to moving during lockdown which should help answer any questions you may have.
*2020 figures not available.