What is the new stamp duty holiday and how will it work?

Rishi Sunak is fast becoming the nation’s sweetheart, spearheading both the furlough and mortgage holiday schemes, and now it seems the Chancellor has graced the property industry too, with the introduction of a stamp duty holiday.

Put simply, it will help buyers and sellers alike, saving thousands of pounds when purchasing a home. It comes into effect immediately, and will run for six months, ending on March 31st 2021.

What’s a stamp duty holiday?

Unlike the mortgage holiday that was introduced a few months back, the stamp duty holiday does not need to be repaid at any time (think of it as an omission rather than a delay), meaning that between now and the end of next month, you do not have to pay stamp duty on a property.

The newly introduced stamp duty holiday is valid on properties up to a value of £500,000, and the more you pay, the more you save on stamp duty.

With the average price of an East London property last year selling at £481,854, this means you could save £14,092.70 on stamp duty in the area!

How will the stamp duty holiday impact me?

If you’re a prospective buyer, you could be looking at significant savings! It’s an ideal time to buy.

If you are a landlord or someone looking to sell their home, it’s also good news, with the new incentive encouraging more people to make a purchase before the scheme ends. Coupled with the lifting of certain lockdown measures over property viewings and valuations, it makes the prospect of buying a new home more appealing. If you’ve been deliberating over whether to put your property on the market, now is a great time to respond to the inevitable demand.

It’s worth remembering, that whilst the stamp duty holiday has benefits for everyone, from buyers, to sellers, to landlords, if you’re buying a second home or buy-to-let property, you’ll still need to pay the 3% extra duty on the total price.

What does the stamp duty holiday mean for the property industry?

Despite the easing of lockdown rules, the industry was slow to start moving again, with May viewings down across the board, however, with life slowly starting to return to normal, and with this new injection from the government, we should see a significant boost in both buyers and sellers in the market. Essentially, all those debating whether to postpone their purchase to next year, will now have an incentive to close their deal quicker, and that was clearly the motivation behind the new announcement.

Rishi Sunak explains “we need people to feel confident. Confident to buy, sell, move and improve”, and it should do just that. As we all know, the health of the property sector has a huge impact on the overall economy, so the support we’ve seen today from the government holds benefits for everyone.

How do I take advantage of the stamp duty holiday?

Get in touch with us to calculate how much you could save on stamp duty. We’ve been staying ahead of advancements in the industry, and with over 30 years’ experience in the property sector, we’re in the best possible position to give you advice.

We’re a family-run business, working across East London and the surrounding areas, whether you’re looking for estate agents in Bethnal Green, or property management in Redbridge. We will be more than happy to speak to you about your options! Our low management fees can help you take full advantage of the new scheme. Call us on 01708 875088 or email [email protected].

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