Stamp Duty holiday the big financial break the property market needs!

08 July 2020
Stamp Duty holiday the big financial break the property market needs!

The Government’s decision to cut stamp duty is just the post coronavirus crisis boost the housing market needs, said Lawson Estate Agents Managing Director, Darren Lawson

Chancellor of the Exchequer Rishi Sunak today announced an immediate stamp duty holiday for all homes, up to a £500,000 selling price, in England and Northern Ireland.

It was thought the move would come later in the year, following the Chancellor’s Autumn statement and be in place for a six months period, but it will start immediately and run until March next year.

Darren praised the move and hailed it an ‘excellent stimulus’ for the market, as it recovers from the effects of the Covid 19 lockdown.

“We should stress that, here in Plymouth, business continues to be brisk with plenty of activity in the local market from buyers and sellers alike,” said Darren.

“It’s a good sign that the property market certainly appears as resilient as it has ever been, but it’s obviously important not to get complacent and this move on stamp duty by the Chancellor of the Exchequer will benefit the market, enormously.

“In recent days, there has been some concern that a reduction in certain mortgage products may adversely affect first time buyers, but we are still seeing them in strong numbers here so this housing duty break could certainly help give an extra boost to their spending power.”

The chancellor announced the move as part of his summer statement and is among a number of fiscal measures designed to further boost the UK economy, following the Coronavirus health crisis.

In usual market conditions, homebuyers are exempt from paying stamp duty on the first £125,000 of a purchase price. Then it’s two per cent up to £250,000 and five per cent on the next £675,000.

Mr Sunak said the stamp duty cut would help to save construction jobs and give encouragement to homeowners to move and invest in their homes, as they will be able to apply for vouchers up to £5,000. Part of a £3bn green investment package will be used to cut emissions from poorly insulated homes.  

“With his unprecedented financial package to support both workers and businesses, announced at the height of the health crisis, the chancellor has shown he is not afraid to take the difficult financial decisions in support of the country,” added Darren.

“It will always be a difficult balancing act, supporting the economy effectively while protecting the health and safety of the public and right now, I believe, the Government is getting that balance right, particularly when it comes to the property market.

“It is such an important economic driver in this country, after all.”