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James Laurence are pleased to see the initiative introduced by the chancellor Rishi Sunak to stamp duty thresholds.
The “holiday” announced, means that buyers completing on their new home prior to March 31st, 2021 up to the value of £500,000 will now pay £0 in SDLT. Those paying more are expected will be saving up to £15,000 as the chancellor suggests a the average stamp duty bill will fall by £4,500, highlighting that almost nine out of 10 people buying a main home this year are expected to now be paying no stamp duty.
How the changes affect you and the new changes according to the government website:
Residential Rates on purchases from 8 July 2020 to 31 March 2021
As part of the holiday, homeowners only start to pay SDLT on the amount that you pay for the property above £500,000. These rates apply whether you are buying your first home or have owned property before.
Property or lease premium or transfer value SDLT rate
Up to £500,000 Zero
The next £425,000 (the portion from £500,001 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%
This benefits those searching their main residence, with the government in the midst of wider plans to get the country’s economy back on track and stimulate a number of industries. The property sector is one marketplace that should be boosted encouraging house purchases, in what-to the consumer- has been an uncertain market post lockdown.
The question we have been asked already by clients is how this impacts landlords adding to their portfolio and the good news is they too benefit with revised rates.
The 3% higher rate for purchases of additional dwellings applies on top of revised standard rates above for the period 8 July 2020 to 31 March 2021.
The following rates apply:
Property or lease premium or transfer value SDLT rate
Up to £500,000 3%
The next £425,000 (the portion from £500,001 to £925,000) 8%
The next £575,000 (the portion from £925,001 to £1.5 million) 13%
The remaining amount (the portion above £1.5 million). 15%
Further winners include buyers who have previously exchanged on property purchases but have yet to complete, welcome savings been made as the holiday is implemented immediately. The savings however cannot be backdated to those already completed.
Our Associate Director, Andy McHugo watched with intrigue as the news came in commenting
“This could well be the trigger for a full recovery from what has been a dormant national property market at the early release from lockdown with a dearth of available properties. Whilst enquiry levels have already been widely reported as very positive compared to pre COVID19, this could encourage more fluidity in the market with the supply of property evidently needed to meet demand, as owners should look to capitalise with more confidence in what have been immeasurable circumstances.
We look forward to further news in the Autumn budget to the sustainability and long term plans of such an initiative to ensure this isn’t a cliff edge long stop incentive”.
We would love to hear from our customers who will benefit from these changes and continue to offer virtual or full valuations of properties in a safe and convenient manor.
