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Stamp Duty Holiday Extension Announced
Stamp Duty Holiday Extension Announced
The government is preparing to extend the stamp duty holiday in the UK in an attempt to maintain momentum in the housing market, the new extension will last for three months - until the end of June – according to a report from the Times.
The holiday, first announced by the chancellor Rishi Sunak last July, exempts buyers from the levy imposed on the purchase of primary residences up to a cost of £500,000.
When the extension ends, the threshold will revert to the original £125,000 before the tax has to be paid.
News of the extension comes after a fierce campaign by economists, estate and letting agents and commentators.
There has been speculation on whether this announcement will impact the housing market positively, or whether it will cause the same challenges down the line.
Carol Bassett, director of Walter & Mair estate agents in Coulsdon said: “The extension of the stamp duty holiday is generally a good thing. It will release a bit of pressure on the conveyancing system and stop sales falling through unnecessarily.
“However, the extension is also just moving the goal posts. It will create a new cliff-edge further down the line. “But for now it’s a positive development for the housing marketing here in Surrey.”
According to Estate Agent Today, the extension is “precisely the same as advocated by the Building Societies Association” And that “the BSA believes that a tapered end would allow any house purchase where the mortgage approval has been granted by the end of March, an additional three months to complete while still benefiting from the rate reduction.”
Full details of the Chancellor’s plans are expected to be announced when he releases the government’s official budget on Wednesday 3rd March.
We’ll update you as we find out more. 
