Property News > Homebuyers could still benefit from reduced stamp duty despite end to holiday

Homebuyers could still benefit from reduced stamp duty despite end to holiday

Homebuyers in England and Northern Ireland could still benefit from the reduced rate of stamp duty that was introduced as the initial stamp duty ‘holiday’ came to an end on 30 June. 

Indeed, new data from mortgage broker Trussle reveals that existing homeowners on the move between 1 July 2021 and 30 September 2021 will typically pay £4,304 in stamp duty as opposed to £6,804 in normal times, representing a saving of £2,500. This is based on the average property price of £336,073 across England and Northern Ireland. 

The reduced rate means that movers are not required to pay any stamp duty on the first £250,000 of any property purchase made during this three-month period. Once the £250,000 threshold is passed, they would need to pay 5% on the next £675,000 of the purchase (from £250,001 to £925,000) - provided the deal is done before 30 September. 

As such, significant savings can still be made - but buyers would need to act fast, as it currently takes 137 days in the UK to complete on a property. Unprecedented demand generated by the stamp duty holiday has caused severe delays to the homebuying process, with conveyancers finding it particularly difficult to manage their volume of work. However, there are a number of UK regions where the process is significantly quicker. 

Miles Robinson, head of mortgages at Trussle, said: “Without doubt, the stamp duty holiday has been the driving force behind the property market over the past year. During a time when many expected property transactions to tumble, as households tightened up their finances, it provided a huge incentive for people to move home rather than stay put. As a result, we have seen record levels of demand across the supply chain which has driven strong price growth throughout the year.”

He added: “Now, as the ‘full’ stamp duty holiday ends, many might think that there are no savings to be made. But, it’s important to remember that there is a reduced rate of stamp duty in place until 30 September. For those that still want to move home and can move quickly, not paying Stamp Duty on the first £250,000 can still mean big savings.”

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