Stamp Duty news - buy now and save £15,000 until March 2021

The Chancellor’s announcement of 8th July regarding a Stamp Duty holiday is likely to act as a terrific stimulus to the UK property market. From now until 31st March 2021 buyers will only pay stamp duty on any amount above £500,000 saving buyers up to £15,000. This will bring the stamp duty bill for a £1m home from £43,750 down to £28,750, a saving of around a third. LondonDom anticipates significant number of buyers wanting to take advantage of this window of opportunity. Demand has been building up for the past few years due to political uncertainty and grew even more during the lockdown. The first few weeks since the market reopened showed clear signs of the pent-up demand finally being released. We saw significant numbers of people contacting us and sales agreed are back to pre-lockdown levels.
 
Mortgage interest rates are at an all-time low which also benefits the housing market. However, there are two key factors which will influence how the market pans out in the future; employment figures and how easy it is to get a mortgage. No one can predict future employment levels, however, in the coming months, the picture will become clearer, particularly in October when the furloughing scheme comes to an end.

The weakness of the pound and the uncertain times ahead are acting as a further stimulus to buyers from overseas and there is no doubt once travel restrictions are eased, we will see a large influx of those wanting to purchase before the introduction of a further surcharge in Stamp Duty in April of next year.  

We are encouraging our clients, who are considering selling, to take advantage of this imbalance and get their property on to the market as soon as possible. Virtual viewings, floor plans, and excellent photography enable our skilled team to keep the number of physical viewings right down, and only really seriously interested buyers will be given a physical viewing.

It is important to note that a saving will also apply to second home buyers and investors. However, these buyers will still be liable to pay the second home tax at a rate of 3 percent on the first £500,000 of property price and the same rates as previously above that level.

For an exact calculation of Stamp Duty, please click here for our Stamp Duty Calculator and see the Government's official announcement here.