How You Can Still Benefit from a Reduced Stamp Duty
New data from online mortgage broker Trussle has revealed the regions that could still benefit from the reduced rate of Stamp Duty that came into place when the initial ‘Holiday’ ended on 30 June 2021.
From 1 July 2021 to 30 September 2021, next time buyers in England & Northern Ireland will not pay any Stamp Duty on the first £250,000 of a property purchase. After this, they will pay 5 per cent on the next £675,000 of the purchase (from £250,001 to £925,000). With an average property price of £336,073, buyers during this period will pay £4,304 in Stamp Duty as opposed to £6,804 in normal times, representing a saving of £2,500.
As such, buyers who can complete a property purchase within 92 days can still expect significant savings. This timeline will be difficult for many as it currently takes 137 on average to complete on a property in the UK. There have been severe delays to the homebuying process, due to unprecedented demand generated by the Stamp Duty Holiday. In particular, conveyancers struggling to cope with the volume of work has had a significant impact on completion times. However, there are still some locations where buyers can beat the deadline.
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.”