In news we’ve been waiting for since the third lockdown was introduced, it appears that the Government are likely to extend the stamp duty holiday for an additional three months when the Chancellor of the Exchequer, Rishi Sunak holds his Budget update next week.
Early reports by The Times are suggesting that the ‘holiday’ that was due to end on 31 March, will now be extended until the end of June 2021 following calls to do so to avoid the potential last minute collapse of nearly 100,000 property transactions that might not complete in time. The stamp duty break for house purchases raised the threshold from £125,000 to £500,000 in efforts to boost sales after the initial decline at the start of the first lockdown. Figures from the second half of 2020 demonstrate that the move was a success with the highest level in the number of transactions recorded since 2007 and house prices also increasing by record amounts.
However, the impending deadline had seen the buoyant property market slow down recently as buyers realised they were unlikely to benefit from the savings. It is hoped that this extension will reinvigorate the market and calls continue to permanently increase the threshold or scrap the tax altogether. It remains to be seen if this will happen, but for now, we will be paying close attention to the Budget next week at least for official confirmation of the extension.