Landlords have been given a boost after the Chancellor announced an extension to the stamp duty holiday in his latest Budget.
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Rishi Sunak confirmed the extension of the tax holiday until the end of June.
Until then, the stamp duty holiday will continue to apply to the first £500,000 of a home’s purchase price.
It will then taper off, applying to the first £250,000 until the end of September, before returning to £125,000 at the beginning of October.
Landlords will continue to benefit from this holiday and potentially thousands of pounds in savings if they’re expanding their property portfolios in the coming months.
Property investors will still have to pay the three per cent stamp duty surcharge on second homes and buy-to-let properties.
The Chancellor announced the extension to allow any property sales agreed in recent weeks to complete and save up to £15,000 on their stamp duty bill.
It’s believed that delays in the transaction pipeline could otherwise see these sales fall through.
Jonathan Carroll, of Cartmell Shepherd Solicitors, said: “The sheer volume of transactions underway at the moment, combined with delays at mortgage lenders and others affected by home working, has led to a bottleneck in the market at just the wrong time, and this extension should give some time for that blockage to clear.”
David Postings, chief executive of UK Finance, said: “We welcome the certainty the extension and a phased approach to its ending brings.
“It will help prevent a cliff edge, reduce the risk of house sales collapsing and will prove beneficial for all parties involved in the housing market.”
John Goodall, chief executive of Landbay, also welcomed the extension of the stamp duty holiday, saying: “It is good news for landlords and anyone wanting to purchase a property.”
He added: “It will certainly enable all of the purchases currently in the pipeline to get over the line.”
However, many experts have called for the tax to be scrapped altogether as it’s out of date.
Mr Goodall added: “Longer term, the government really needs to look at reforming stamp duty more broadly as this archaic tax distorts the market.”
And James Hyman, of estate agents Cluttons said: “It’s encouraging that the government has offered this extension to the stamp duty holiday as it is the stepping-stone to long-term stamp duty reform for the future.”
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22 June 2020 • 9-minute read
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