Jameson & Partners share thoughts on Stamp Duty in the Budget

Thoughts on Stamp Duty in the Budget 2021


Thoughts on Stamp Duty in the Budget 2021

In this blog we share our thoughts on Stamp Duty in the Budget 2021. Especially when there were key points we were hoping to hear. What was going to happen with stamp duty was one of them. After all, there are a lot of property transactions riding on the decision. So, here’s more about what Rishi Sunak delivered in the Budget relating to stamp duty, and our thoughts on them.

Extension to the Stamp Duty Holiday
There were widespread media reports prior to the budget that the Chancellor would be extending the Stamp Duty holiday. It was indeed good news to have that information confirmed by the man himself yesterday. However, what was just as crucial was they way in which the stamp duty holiday would come to an end.

The problem with an extension to it, is the potential to add more fuel to the ‘let’s buy now’ fire. People will act quick in a hope to get a deal on a property, in time for the new deadline. The new final date for the £500,000 nil rate limit has been extended to 30 June 2021.

Easing the burden
The extension is wonderful news for those who agreed a deal on a property towards the end of last year. Especially for those who have been struggling to get their transactions over the line. Of course, the crazy volume of transactions has caused immense strain on an already inherently slow conveyancing process.
It is by no means the fault of these people if their deals are facing delays because conveyancers cannot cope. So, this extension brings some relief to them and we hope, this means they get those property sales exchanged and completed, for once and for all.

New properties to the market
We’re by no means against being busy or receiving lots of new enquiries for property valuations, with the view of selling before the new stamp duty deadline. What we are concerned about, is the same pattern emerging again. There is no doubt people will look for a quick sale and onward purchase in the hope of benefitting from the stamp duty reduction.

But we worry whether this will lead to the same difficulties we’ve experienced in the last few months. While we estate agents can do our bit, and we have done plenty of chasing on behalf of our clients in recent months. We are at the mercy of the legal teams when it comes to getting deals done and completed. All we say to anyone is that the process takes time, so don’t expect miracles to happen.

A gradual end to the Stamp Duty holiday
The Chancellor confirmed yesterday a plan to allow a smooth transition to the end of the Stamp Duty holiday. So, from the end of June until the end of September, there will be a doubling of the standard level at which people start paying stamp duty, to £250,000.

This is something to look out for anyone who agrees to buy a property over this amount, and below £500,000. Especially if you are doing so to avoid the stamp duty land tax altogether. If your sale does not complete by the end of June, and it looks like it may take a few weeks more to go through, you will undoubtedly be faced with stamp duty charges from £250,000 onwards. So, this is worth thinking about and perhaps budgeting for in a ‘worst case scenario’.

From there on and 1 October 2021, we will see stamp duty return to its usual £125,000 level. And hopefully by then, there will be a steadier return to property sales levels which allows everyone the breathing space they need to deliver on time, and without panic.

Located in the heart of Altrincham, Jameson & Partners is an independent estate agent offering a full property sales and lettings service. If you are keen to sell your home in time for the new stamp duty holiday extension, contact us for a FREE no-obligation property valuation, and our impartial advice on getting the best price for your property.