Home U.K Stamp duty holiday fuels house sales amid pandemic

Stamp duty holiday fuels house sales amid pandemic


Half of property professionals reported an increase rather than a decrease in agreed sales, the Royal Institution of Chartered Surveyors (Rics) said. It marked the strongest surge since last August. A stamp duty holiday had been due to end on March 31, but it was extended in the recent Budget.

Simon Rubinsohn, of Rics, said: “The decision to extend the stamp duty break and taper its expiry had an immediate impact.

“All key activity indictors rebounded in March.

“Demand is outstripping supply so prices go upwards.”

The stamp duty “nil rate” band for all properties under £500,000 will now not revert to normal levels until the autumn.

It will fall to £250,000 from July 1, and from October 1 it will return to £125,000, where it usually sits.

The pick-up galvanised expectations that sales activity will increase over the next three months, with 35 percent of surveyors predicting an uptick.

This was the most upbeat reading on this measure since January 2020.

Rics said that with demand for homes continuing to outstrip supply, house prices increased, with 59 percent of surveyors seeing a rise.

House prices were reported to be on the up all over, with the strongest boost in the North-west, Yorkshire and the Humber and Northern Ireland.

Sixty percent of surveyors expect prices to be higher in 12 months.

In the rental market, tenant demand rose. London was the only part of the UK where rents were expected to remain the same or fall.


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