The decreased rates mean that anyone hoping to invest in a property for less than £500,000 is exempt from paying stamp duty, a dramatic improvement on the previous threshold of £125,000 — and resulting in a potential saving of up to £15,000 in tax bills.
Government has faced pressure to delay the original deadline of 31st March as aspiring homeowners have been rushing to complete transactions before the end of the holiday. This, combined with various lockdown restrictions has led to delays in completions.
Property website Rightmove has stated that 412,000 house sales agreed in 2020 still remain in the legal process, and if the stamp duty holiday deadline is not extended, around 100,000 buyers will miss out on the saving and be forced to pay increased costs.
A parliamentary debate took place earlier this month to discuss next steps for supporting the housing market after a petition, calling for a stamp duty holiday extension, reached 100,000 signatures, and MPs received growing pressure to extend the tax break.
Further plans to prolong the holiday are expected to be announced by the chancellor in the budget on Wednesday 3rd March.
For further advice about how these developments will affect you, please get in touch with one of the team. The Applegate team is committed to providing a smooth stress-free experience for each of our customers and would be happy to help with any queries.