Stamp Duty Holiday To Boost Property Market

Opportunistic homebuyers are likely to head to their nearest estate agents following the news there will be a stamp duty holiday for homes up to the value of £500,000.

Earlier this week (July 8th), Chancellor of the Exchequer Rishi Sunak revealed a Mini Budget to help the economy recover following the disastrous impact of coronavirus.

In order to bolster the housing market, he increased the stamp duty relief threshold from £125,000 to £500,000.

This will take effect immediately and will continue running until March 31st 2021, and could see property buyers save as much as £15,000 if they buy a £500,000 house.

By being able to reduce the amount of money they have to raise in order to go ahead with a purchase, homebuyers are more likely to increase their budget, start their property search sooner rather than later, or spend more on renovating it, such as with cornice restoration in London.

Hiring professionals or buying materials to redecorate the new house will also help boost the economy, keeping people in jobs and encouraging everyone to spend more.

National head of residential property at Irwin Mitchell Jeremy Raj stated the changes to the stamp duty land tax (SDLT) “went further than most within the industry had dared hope”, adding: “There will be a real boost to the sector.”

He noted how important the property market is “in relation to the confidence and strengthen of the economy overall”, and suggested the SDLT holiday will have a “significant and immediate bonus effect” throughout the country, leading to greater transaction activity.