Prospective homebuyers can look to a helpful breakdown of insights from property experts on what the stamp duty holiday extension could mean for them. In Chancellor Rishi Sunak’s latest update in the March budget, the current stamp duty holiday was extended from March 31 until the end of June for homes under £500,000 and until the end of September for homes under the value of £250,000, allowing homebuyers the opportunity to save costs when purchasing a property.
Property experts at FHP Living have compiled a list of the main insights for all prospective homebuyers to ensure they are clued up with the facts.
“The extension of the stamp duty holiday from its original date of the end of this month until the end of June and September, will allow homebuyers a much larger window in which to progress with their moves and make important decisions. It will mean much more opportunity is available to those looking to get on the property ladder, buy another house or extend their portfolio,” said Steve Parker, director at FHP Living.
“In what has been one of the most unprecedented years for many sectors, the stamp duty holiday initiative has been a major factor in allowing the property market to remain buoyant, and many of the developments that we are marketing, where we are based in Nottingham, have provided buyers with fantastic opportunities to save, across a spectrum of price ranges.
“As a leading estate agent in Nottingham, we are pleased to see high quality homes continually being built in the area, improving the city’s residential offering for current citizens and the influx of people moving to the area.
“It’s very positive news to hear that the stamp duty holiday has been extended, opening up many opportunities for buyers looking at a range of homes we are currently offering – including riverside developments such as Pelham Waterside, The Yacht Club, Trent Bridge Quays and The Waterside Apartments, and other developments within Nottinghamshire including Barton Quarter in Beeston and Hunters Wood in Gedling village.”
Here’s what you need to know about the proposed stamp duty holiday extension:
Opportunity to save
Homebuyers can save as much as £15,000 in tax and homes under the value of £500,000 remain exempt from stamp duty. You will pay nothing on the first £500,000 of your property, but anything over this amount you will need to pay 5% stamp duty tax on for the next £425,000, up to £925,000. Rates are then 10% from £925,001 to £1.5million, and 12% for £1.5million and above, and this applies in England and Northern Ireland.
Time to complete
If the stamp duty holiday extension deadline had remained at 31 March, you would have needed to complete a sale by this date to benefit from the stamp duty holiday. With the extension until the end of June for homes under the value of £500,000 and the end of September for homes under the value of £250,000 – this will allow plenty of extra time for properties to progress and complete.
Easing of restrictions
With the government’s COVID-19 exit roadmap announcing the easing of restrictions from March 8, those who have been hesitant to attend viewings that aren’t virtual may find it useful to book in and see properties in person – allowing decisions to be made and things to move along faster, with an extension until the end of June and September.
As well as the stamp duty holiday extension, the government has confirmed a 95% mortgage guarantee scheme in the March budget, which will see 5% deposit mortgages reintroduced, allowing first time buyers a better chance at getting on the property ladder much sooner. This, along with the stamp duty holiday extension, means that the next few months will be an ideal time for prospective homebuyers to press on with their search and registrations of interest in new properties.