Reflections On The End Of The Stamp Duty Holiday

30 September 2021

Reflections On The End Of The Stamp Duty Holiday

In July 2020, Chancellor Rishi Sunak announced a holiday in Stamp Duty payments in an attempt to get the housing market moving again after the first Covid-19 lockdown. But how successful was that holiday and what impact did it have on the housing market?

With the Stamp Duty Holiday coming to an end today, I decided to reflect on the past 15 months. In this article, I’ll explain exactly how the Stamp Duty Holiday has affected the housing market and what you can expect going forwards when you’re buying and selling property now that this tax break has ended.

Stamp duty holiday

What Is Stamp Duty And Why Did It Go On Holiday?

Stamp Duty Land Tax (sometimes abbreviated to SDLT) is the tax that you pay to the government when you buy a house. It is usually paid on all house purchases over the value of £125,000.

In July 2020, the government announced a holiday on Stamp Duty, meaning that purchases up to £500,000 would be exempt from Stamp Duty. The aim of the Stamp Duty holiday was to boost the housing market during the Covid-19 pandemic, so we always knew that it would come to an end.

Initially, the Stamp Duty Holiday was due to end in March 2021, but the government decided to extend it to support people that were stuck in a chain. The deadline was extended to 30 June 2021, with a reduced rate of Stamp Duty payable until 30 September 2021.

What Was The Impact Of The Stamp Duty Holiday?

The Stamp Duty Holiday had a huge impact on the housing market, giving it the boost that the government were hoping for. This is because of the massive savings that homebuyers have been able to make by not paying Stamp Duty.

For example, one couple that is completing on a house today will be saving £2,500 in Stamp Duty – a significant amount of money that they will now be able to spend on their new home.

There’s no denying that moving house can be expensive, so there’s no wonder that more people have been encouraged to move house during the Stamp Duty Holiday!

How Did It Get So Busy?

Throughout the Stamp Duty Holiday, the housing market has been extremely busy. However, that isn’t just down to the cost savings that the Stamp Duty Holiday brought.

During lockdown, many people were forced to spend more time at home, making them realise that they needed more space. Whether it’s office space for working from home, a playroom to keep the kids occupied or a bigger garden to relax in, many people realised that they simply needed more space.

There were also lots of people that saved money as a result of the pandemic. Money that would have usually been spent on eating out, commuting to work or going on holiday became savings, meaning that people could suddenly afford to move home.

All of these factors together have contributed to a busy housing market, and this is showing no signs of slowing down any time soon.

The Future Of The Housing Market

So, what does the housing market have in store for us now that the Stamp Duty Holiday is coming to an end?

There still aren’t enough houses on the market to keep up with demand. Buyers are out there desperately looking for houses, and they’re selling quickly as a result of the high levels of competition. For this reason, I don’t think the housing market is likely to calm down any time soon.

Property prices have been steadily rising over the past 12 months, and I do expect this to slow down now that the Stamp Duty Holiday has come to an end. However, it’s unlikely that prices will fall whilst the market is still so busy, so prices will probably plateau for a while now.

SDLT

Is It Still A Good Time To Move House?

With the Stamp Duty Holiday coming to an end, you might be wondering whether it’s still a good time to move house.

The truth is, now is a great time to put your property on the market. There are so many buyers out there who are desperately searching for their dream home, and demand is high. This means that many houses are selling within weeks or even days of going on the market.

For example, two weeks ago I posted a live video on social media whilst taking pictures of a three bedroom semi-detached house in Killamarsh. Before I’d even had chance to upload the listing onto Rightmove, we’d received offers on the property, with an offer accepted just three days after that initial video was uploaded to Facebook.

That’s why right now is a great time to sell a house, because there are buyers out there actively looking for properties, just waiting for the right one to appear.

Thinking Of Selling Up?

If you’re thinking of moving house, there’s never been a better time to consider putting your property on the market. There’s no sign of the market slowing down any time soon, so now is the ideal time to make the move. But how do you know which estate agent you should use to sell your home?

The most important thing is that you choose someone that you trust to do the right thing by your property. You need someone that knows the local area inside out, as well as being highly experienced in selling property.

As an independent estate agent in South Yorkshire, I have sold thousands of properties in the area, as well as having first-hand local knowledge.

I’m here to make the process of selling your property simple, taking the stress and confusion away. I’ll be there for you through the entire process, from the day that you decide to put your property on the market, right through to handing over the keys to your lucky buyer. I offer a bespoke service to suit your needs, because I know that every property is different.

If you’re considering selling your home, I’d love to talk you through your options and provide you with a free, no-obligation valuation. Give me a call today on 07920 097 175, or request a free valuation below.

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T: 07920 097 175

E: linda.stringer@exp.uk.com

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