There’s no doubt about it, the current climate has challenged every sector. The coronavirus pandemic has resulted in increased uncertainty and, as a result, the UK economy has been hit hard.
As normality slowly creeps back in and many businesses are setting out on the road to healing, Chancellor Rishi Sunak recently revealed a number of measures from the British government aimed to kick-start the economy and boost the recovery, post-lockdown.
One of these measures is the change in threshold for Stamp Duty. This has been temporarily raised until next March, across England and Northern Ireland, in a bid to boost the property market and help buyers who may be struggling due to coronavirus.
Stamp Duty is a tax paid by anyone purchasing a property across the UK. The rates can differ depending on where in the UK you are buying, and first-time buyers are exempt unless the property is valued over £300,000.
These decreased rates will only be available until 31st March 2021 and will mean that anyone investing in a property for less than £500,000 will not be required to pay Stamp Duty – a dramatic improvement on the previous threshold of £125,000.
The new rule also means that although those buying a property over £500,000 will still pay a fee, the rate will see a £15,000 drop. In other words, where the Stamp Duty bill for a £1 million home would have originally been £43,750, it has been knocked down to £28,550 – saving house hunters around a third. According to Mr Sunak, the average Stamp Duty bill will fall by £4,500 due to the changes.
The announcement is expected to prompt a surge in listings which in turn will mean plenty of choice on the market for first-time buyers hoping to make their way onto the property ladder.
We have been delighted to see so many customers move their housing plans forward a year to make the most of the Stamp Duty holiday, with both buyers and tenants actively on the lookout for their next home.
We are anticipating a great response to all properties going live –either for sale or rent over the next few months. We are answering calls and enquiries daily and are dedicated as ever to carrying out viewings in a safe and responsible manner.