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Will Stamp Duty holiday be extended? Buyers call for Stamp Duty to be scrapped

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To give a boost to the property market and aid buyers following the first national lockdown, saving buyers up to £15,000. Now Chancellor Rishi Sunak is due to give his Spring Budget, and would-be buyers are wondering if the Stamp Duty holiday would be extended, and many are hoping it will be.

For anyone buying a home, Stamp Duty is an important factor to consider.

Stamp Duty is a tax which is paid when you buy a property and is charged as a percentage of the purchase price.

In July 2020, the Stamp Duty threshold was increased to £500,000 in England and Northern Ireland, and £250,000 in Scotland and Wales.

This means for those buying a home worth more than £500,000 could save £15,000 in tax before the deadline of March 31.

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With the deadline looming, many are wondering what Mr Sunak’s budget has in store for Stamp Duty.

Research from Ascend Properties has revealed homebuyers not only want an extension announced on Wednesday, but the majority would like to see Stamp Duty scrapped altogether.

A survey of 1,137 recent homebuyers (over the last six months) in England carried out by Find Out Now revealed 79 percent want an extension.

Of these, 51 percent want an extension for the whole market, while 28 percent think it should be restricted to delayed sales having offers accepted before the original March deadline.

Managing Director of Ascend Properties, Ged McPartlin, commented: “The stamp duty holiday has been a success for buyers able to complete in time to secure a saving.

“However, it’s also caused an enormous backlog of sales due to the industry becoming overwhelmed by the sheer volume of buyers entering the market.

“We can unequivocally say that a deadline extension will benefit more homebuyers should it materialise on Wednesday.

“At the same time, it’s also likely to exacerbate the current issues of extended purchasing times.

“While many would like to see it happen, a stamp duty saving isn’t the primary driving force behind the intent to purchase, so you have to question whether an extension is worth the many additional months of transactional delays that it is likely to cause.”

Ascend Properties has issued advice to would be buyers, saying to act as they would if no holiday was in place at all.

They say: “You’re going to face delays, and you might not complete even if an extension is implemented.

“Stay calm, take one day at a time and don’t stress yourself out hoping to save on stamp duty.

“That way, any saving will come as a bonus, and a failure to secure one won’t bring such disappointment.”



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