As the clock ticked ever closer to the deadline of the 31st of March, calls for the Stamp Duty Holiday to continue have been answered – with a three-month extension until the end of June, according to The Times. With the Chancellor’s Spring Budget taking place in a matter of days, the much-anticipated, but relatively short-term, extension, is speculated to feature, allowing a backlog of transactions to push through.

Brought in in July 2020, in the midst of the pandemic, the temporary reduction has been a refreshing advantage for buyers, with savings of up to £15,000. Market activity spiked across the country, and with that, a build-up of deals has ensued – not just for estate agents, but solicitors, surveyors, and removal companies too. Provisional data from HMRC shows an increase in transactions of nearly 50% in December figures. Our thoughts are that this further temporary measure is, in essence, kicking the can down the road. We had anticipated a resurgence for the market, coinciding with the March 8th reopening of schools, and upcoming Easter break. This new deadline merely ties up the deals already progressing.

Zoopla report the reduction will have assisted approximately 740,000 people, but that 70,000 were set to miss out on the saving if the 31st of March end date remained. While this June ending is cause for relief for many, bearing in mind the length of time it is taking to reach completion, solicitors urge caution that more recently agreed sales may still miss out.

Stamp Duty has seen changes over the last few years, and rates for first-time buyers, or up to new thresholds, have been introduced. Although the £500,000 cap from the Holiday may not be permanent, there are still schemes in place for some buyers. And there’s always hope that the antiquated tax could be abolished all together one day.

At this late stage, a decision being made is still appreciated by all those involved in the process. Of course there are a large number of buyers who have taken this as an opportunity to upsize earlier than planned, but there is also a wide variety of reasons where moving home is unavoidable. We are grateful for the elimination of uncertainty, in what has already been a very uncertain year.

If you would like to discuss what affect the extension of Stamp Duty may have on your property sale or purchase, contact us on 01525 40 22 66 or email ampthill@orchards.co.uk

You can use the Government’s Stamp Duty Calculator to work out what tax you can expect to pay on potential purchases here.