Earlier this month Chancellor Rishi Sunak announced a stamp duty holiday for house buyers. Reduced rates of Stamp Duty will apply for residential properties purchased from 8 July 2020 until 31 March 2021 inclusive.
If you purchase a residential property between 8 July 2020 to 31 March 2021, you only start to pay stamp duty on the amount that you pay for the property above £500,000. Potential saving of £15,000. These rates apply whether you are buying your first home or have owned property before.
Rightmove has noted inquiries have surged more than 49% since the announcement. Nationwide have re-introduced 90% LTV mortgages after withdrawing them earlier in the year stating the stamp duty holiday was a factor influencing their decision.
It is argued that the holiday will just accelerate transactions that would have happened regardless, however it is a welcome help for those moving home in the next 8 months. I hope all our Solicitor friends are planning ahead for the inevitable deadline rush of 31 March 2021 as buyers will want to push through property deals to ensure they get the stamp duty holiday.