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The stamp duty holiday has been extended until the end of June, the chancellor confirmed in today’s Budget.
The tax break introduced last year, and due to end on 31 March, will continue to apply to properties for sale up to a threshold £500,000 until 30 June.
Rishi Sunak added that the nil rate band for stamp duty would subsequently drop to £250,000 until the end of September, returning to the standard cut off rate of £125,000 from 1 October.
Sunak said the decision would help many buyers who would not meet the original deadline and to continue to stimulate the property market.
Last month, the Centre for Policy Studies estimated that the existing stamp duty holiday has so far increased house sales by 140 per cent, with 83 per cent of people buying a ‘primary’ home not having to pay the tax.
Close Brothers Property Finance Division chief executive Frank Pennal says: “Extending the stamp duty holiday is a very sensible move – ensuring the estimated 193,198 sales currently in the pipeline are not lost when lockdown is fully lifted will mean ‘normal’ market conditions can resume. The property industry has been an engine for economic growth during the pandemic and this decision will enable that momentum to continue.”
Legal & General Insurance head of intermediary Sarah Watts says: “We welcome the news of a stamp duty extension as this period of time will help many of those already in the buying process. However, as an industry we must look beyond this, including ways advisors can future proof their business through a strong general insurance book if there is more volatility in the mortgage market. It will be crucial that we continue to have those important customer interactions, to help inform them why insurance for their home is so important.”
* Content Source – Mortgage Strategy.
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