The current stamp duty holiday granted on the first £500,000 of all property sales in England finishes on the 31st March 2021. Stamp duty is payable on completion of contracts and any house purchase that completes after 31st March 2021 will be subject to the original levels of the tax…
Stamp Duty holiday deadline
House sale agreements have increased since July and October saw an increase of 50% on last year, but this has created log jams in the rest of the property buying process and a race to complete house sales by the end of March 2021 – to avoid what might be a significant stamp duty bill.
In July the Chancellor, Rishi Sunak, introduced the stamp duty holiday to help stimulate the property market which had been hit by the Coronavirus crisis. The move had the desired effect, and according to Rightmove national sales agreed rose 50% in October 2020. This increase is having an impact on the homebuying process.
The Stamp Duty Holiday deadline was extended in the Spring Budget. Read more here.
Mortgage lenders are taking much longer to generate a mortgage offer due to the increased volume of business, and according to a report in the Independent they often have a reduction in staffing levels due to the pandemic whilst also being more cautious and looking more closely at bank statements and business accounts. Jonathan Bright, Director of J Finance Ltd stated that: “It can currently take 6 to 8 weeks to procure a mortgage offer and sometimes longer.”
The Conveyancing process is also slower; often council staff have been redeployed so local searches are taking longer and the new lockdown is having an impact too. Conveyancers and solicitors also have a backlog of cases all of which add to the congestion that the industry is currently experiencing.
Any potential home buyers entering the market now should take this situation into consideration when making their plans. The government are currently stating that the stamp duty holiday will not be extended to take account of the slowdown in the home buying process and will finish as agreed on 31st March 2021.
STOP PRESS (03/03/21)
In the Spring Budget, the Chancellor announced that the stamp duty holiday would be extended from 31 March until 30 June 2021. Additionally, until 30 September 2021, no stamp duty will be charged on a residential property bought for up to £250,000. We are not expecting any further extensions.
If you would like to discuss how your mortgage is progressing, we will be happy to help. Please contact us without obligation.
Established in Berkshire in 2004, J Finance Ltd is one of the leading financial planning companies in the area. We serve clients across England and Wales. If you would like to discuss this subject or any other financial matter, please contact us on 01635 521 300 or email email@example.com.
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