A statement from the treasury confirms there are no plans to extend the stamp duty holiday deadline. It has been partially credited for the high market activity, along with the release of pent-up demand following the lockdown. However, news that there will be no extension or tapering of the deadline has caused disappointment throughout the industry. Both homebuyers and property professionals have been left concerned for the numerous transactions already underway that now risk falling through.
Many buyers are relying on the savings afforded by the stamp duty holiday to complete their purchases. Following the calls for an extension of the deadline, many hoped the government would respond in favour. Along with the launch of a petition calling for an extension on the official parliament website, many were hopeful. The petition, which had over 23,000 signatures at the time of writing, called for a six-month extension.
The Treasury responded:
“The government does not plan to extend this temporary relief.
“To stimulate immediate momentum in the property market and to support the jobs of people whose employment relied on custom from the property industry, the government decided to introduce a temporary Stamp Duty Land Tax (SDLT) relief.
“This relief increased the starting threshold of residential SDLT from £125,000 to £500,000 from the 8 July 2020 until 31 March 2021. Since the relief was introduced, transactions have increased and seasonally adjusted data shows that in October 2020, transactions were 8% higher than in October 2019.
“As the relief was to provide an immediate stimulus to the property market, the government does not plan to extend this relief. SDLT is an important source of government revenue, raising several billion pounds each year to help pay for the essential services the government provides.”
What does this mean for current transactions?
As the market continues to react to the news, many have been left concerned for their transactions. Both industry professionals and prospective buyers alike have been left disappointed. Delays are being felt throughout the industry, with a backlog of cases to push through. Although calls are still being heard for the stamp duty holiday to be extended, buyers are being advised to move quickly if they want to benefit from the tax savings.
How can Home Move Hub help?
Home Move Hub are here to support you throughout your transaction. If you are looking to take advantage of the stamp duty holiday, you must instruct a conveyancer quickly. This will give you the best chance of completing in time to benefit from the savings. Contact Home Move Hub today to find out how we can help!
