Passport to Stamp Duty Holiday until June Good News, but Buyer Beware of Bottlenecks to get Completions over the Line in Time
The Stamp Duty Holiday extension, announced by Rishi Sunak in the Budget,has only been extended by a few weeks, so buyers should be aiming to complete as soon as possible to avoid missing out, according to Robert Burdett, MD at Colchester-based independent estate agent James Leigh Property Management powered by Keller Williams, but Sunak's Budget bailout means that the expected bottleneck at the end of March has been avoided and those buyers set to miss out on the Stamp Duty holiday will now be able to take full advantage of the savings.
Robert Burdett, MD at James Leigh Property Management said, "The Stamp Duty Extension until the end of June is good news, but buyers must remember that a house sale takes time. June may seem like a long way off, but in reality, those few weeks will be gone in no time. Buyers must take decisive action when they have found a property to get their purchases across the line in time. We fully expect a bottleneck at the end of June, so waiting too long could mean missing out."
Mr. Burdett continued, "It's good news for all those buyers in the middle of a sale now who could have faced a big stamp duty bill that they had not anticipated. That could have led to sales falling as buyers pulled out, as well as a bottleneck as buyers raced to complete their sales in time." Mr Burdett continued, "it's good news that sales can complete without disruption, but also means that new buyers may be able to take advantage of the extension and tapering that has been included."
The Chancellor confirmed the stamp duty extension at the Budget, meaning that 234,000 buyers who agreed on a sale from late last year to early March, who may not have expected to benefit, will now save nearly £1 billion if they complete by the end of June.
The tapering announcement of further savings on the first £250,000 of any transaction also means that hundreds of thousands of buyers will benefit from savings of up to £2,500 if they agree on a sale over the Spring, allowing four months for completion.
We forecast that around 280,000 home movers could save, over and above first-time buyers who mostly pay no stamp duty on these transactions. We calculate that the majority of these transactions will be in the £250,000 to £500,0000 price bands followed by £125,000 and £250,000 price bands.
Robert Burdett said, "The Stamp Duty extension announced by Rishi Sunak in the Budget is good news for all those buyers in the middle of a sale now who could have faced a big stamp duty bill that they had not anticipated. That could have led to sales falling as buyers pulled out, as well as a bottleneck as buyers raced to complete their sales in time." Mr. Burdett continued, "it's good news that sales can complete without disruption, but also means that new buyers may be able to take advantage of the extension and tapering that has been included."
Buyers could still benefit from stamp duty savings if they start to progress their purchase now. Those people thinking of selling need to spring into action now to enjoy the benefit of the Stamp Duty Holiday.
James Leigh Property Management, powered by Keller Williams, has recently taken on two new sales agents to meet local demand in the housing market. Robert Burdett said, "positive moves to support the housing market, and other steps to support the wider economy have meant that the housing market has remained buoyant throughout the Coronavirus pandemic, so it's great news that we're able to make two new appointments to grow our team. I would urge anyone thinking of buying or selling their home to start now so they don't miss out."