A look at what the stamp duty holiday has led to
Industry news : 22 - 08 - 21
Since its launch, the stamp duty holiday has led to phenomenal sales numbers for England’s property market, with 50% more transactions in Q1 2021 compared to the previous year, pre-pandemic.*
Now, with the tapered end of the holiday in sight, we take a final look at what the property market has seen over the last year, and what is still to come.
Originally intended to stimulate the market after its spring closure in 2020, the Stamp Duty Land Tax (SDLT) holiday has triggered a house buying boom, with price surges up and down the country and buyers scrambling to put in offers at record speeds.
Even for buyers who may have faced higher property prices over this time, the value of buying with a smaller upfront cost meant that homebuying was an affordable option for 100,000s.
In fact, one survey suggested that four in ten Brits (39%) were able to take advantage of the government’s initiative, with many finding themselves better able to save for deposits and moving costs with limited lockdown options.**
Following the end of the SDLT holiday on the 30th September, the rates will be as follows:
|Property or lease premium or transfer value||SDLT rate|
|Up to £125,000||Zero|
|The next £125,000 (the portion from £125,001 to £250,000)||2%|
|The next £675,000 (the portion from £250,001 to £925,000)||5%|
|The next £575,000 (the portion from £925,001 to £1.5 million)||10%|
|The remaining amount (the portion above £1.5 million)||12%|
These figures are confirmed on the official government portal where you can use an SDLT Calculator to work out how much tax you’ll pay. Access the calculator here.
For advice about buying and selling in the current market, we would like to offer you our support. Please contact our property experts for more information.