It has been reported that Rishi Sunak is preparing to extend the Stamp Duty holiday by a further three months until the end of June. This extension is intended to keep the property market strong as the UK returns from lockdown.
In July last year the government introduced the stamp duty holiday for home buyers if they completed their purchase before March 31st 2021, enabling people to make a tax saving of up to £15,000 when purchasing a property.
The resultant surge in transactions was a much needed kick-start to the property market. It has, however, led to concern in the industry that many purchases will not complete before March 31st ; and there has been increasing pressure on the government to revise the deadline and avoid a “cliff-edge” that could jeopardise an estimated 100,000 property transactions.
Kiri Kkoshi, Head of Real Estate at Healys LLP comments:
“Extending the Stamp Duty holiday is absolutely the right thing for the government to do at this time, and will be welcome news to anyone currently buying or selling a property and struggling to meet the deadline.
“What isn’t yet clear however, is what form the proposed extension will take. An extension that applies to both current and new transactions will almost certainly result in another “cliff-edge” in 3 months’ time; whereas a tapered extension, or changing the “effective date” to the exchange date as opposed to the completion date, would not only avoid this, but will also help lenders and conveyancers better manage the increased demand.”
Full details of the extension to the Stamp Duty holiday are expected to be announced in the Budget on Wednesday of next week.