Stamp Duty Land Tax is currently only paid by buyers who are purchasing an English residential property which is valued above £500,000. The Stamp Duty rate varies depending on the price of properties and the number of properties owned. The SDLT Holiday which was due to end on 31st March 2021 has now been extended to the 30th June 2021; from 30th June 2021, the threshold will fall to £250,000 until the 30th September 2021, when it will then return to £125,000.
It has been predicted that the property market will continue to be buoyant after the end of the Stamp Duty Tax Holiday ends on the 30th June. The Stamp Duty break has led to a boom in house prices, and yet estate agents have reported that they are selling their highest proportion of houses since 2002. The demand for housing is not set to slow down; surveyors have announced that buyers are continuing to look to upsize and buy bigger properties. The Covid-19 pandemic has kept individuals and families working, learning and living under the same roof every hour of the day. Currently, it has been reported that more than 20% of homeowners have said that they are looking to upsize their homes. Having been cooped up working from home, many property owners are looking for bigger gardens, houses with more space to work (e.g. houses with home studies) as workers begin to adapt to the ‘new normal’ where everyday work life/commuting is looking different from pre-Covid times. With the efficiency of new modern technology, most employees have adapted to working from home, reducing costs such as travel and office space and also levelling out work-life balance for many families. As a result, it is unsurprising that the prospect of more working from home is a plan that many companies and individuals will want to carry forward after the long-anticipated end of the pandemic and loosening of restrictions.
In addition to the lifestyle choices precipitated by the pandemic, interest rates remain at historic lows, meaning that many investors are seizing the opportunity to take advantage of the low rates being offered by banks and building societies, particularly when savings accounts are offering less favourable returns.
If you wish to discuss any residential property matters, please call 01932 852057 or e-mail firstname.lastname@example.org.