A Stamp Duty holiday was announced back in the summer by Chancellor Rishi Sunak, which temporarily increased the nil rate band for residential property purchases from £125,000 to £500,000 from July 8, 2020 to March 31, 2021. The latest data from HMRC’s Quarterly Stamp Duty Statistics showed an increase in transactions between July and September.
The report, which is published every quarter, indicated that the total Stamp Duty Land Tax transactions between July and September were significantly higher than April to June.
The total Stamp Duty Land Tax transactions were 68 percent higher in the summer months compared to that of the first quarter.
This was as a result of the easing of the COVID-19 lockdown measures and the introduction of the Stamp Duty holiday.
Despite this, property transactions were still 18 percent lower compared to that of 2019, mainly due to the impacts that the pandemic has caused.
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“Undoubtedly, the revitalisation of the housing sector can be largely attributed to homebuyers looking to take advantage of the Stamp Duty holiday.”
Anyone completing on a property costing up to £500,000 before March 31, 2021 will not pay any stamp duty, which could mean huge savings for the homeowner.
There has also been a cut for buyers of additional properties with the new rate for other properties started at three percent up to £500,000.
Mr Barnard said that those looking to move home should do so now.
He said: “However, with the deadline for Stamp Duty break fast approaching, it’s vital for people looking to move home to act now if they want to benefit from the initiative.
“With buyers in need of fast transactions and the mortgage market under pressure, specialist lenders can offer tailored, short-term solutions that meet these requirements, such as bridging loans.
“Specialist lenders and mortgage brokers need to work together over the coming quarter to ensure housing transactions can be completed within the deadline and explore alternative forms of borrowing that can help individuals achieve their home ownership dreams.”
In the UK, first-time buyers automatically benefit from the Stamp Duty relief on a property.
Under the relief, transactions valued at £300,000 or less are not liable to pay any Stamp Duty and properties valued at more than £300,000 but less than £500,000 are liable to pay five percent on the proportion over £300,000.
This means that some first-time buyers buying property under £300,000 wouldn’t necessarily feel the impact of the relief issued by Rishi Sunak in July.
However HMRC’s data still shows that first-time buyers are benefiting from the relief that was set out back in 2017.
The findings show that the estimated first-time buyers’ relief since its introduction is around £1.3million and there have been 568,000 claims made for the relief.