Chancellor Extends the Stamp Duty Holiday Until the End of June

The property industry has welcomed the news that the chancellor Rishi Sunak will extend the stamp duty holiday until 30 June. Announcing the move in his 3 March budget, the chancellor also said that the threshold for the tax will be set at £250,000 from July until 30 September – double the normal level.

The extension of the tax break follows calls for more time from across the industry. According to Mark Hayward, chief policy adviser at Propertymark: “The extension of the stamp duty holiday to the end of June, followed by the transition to the end of September is much needed to help prevent sales falling through as the initial deadline approaches.

“We know from our own research that failed sales cost estate agents more than £4,000 per sale and consumers more than £1,500 which is why we have called on government to rethink the stamp duty holiday timings. This is good news for the market and will help maintain consumer confidence.”

The stamp duty holiday was introduced in the summer to kick start the housing market after lockdown and boost the wider economy. It removed stamp duty on the first £500,000 of residential property transactions and meant buyers could save up to £15,000. But it led to a surge in demand for properties and delays as movers struggled to buy before the deadline.

In the budget the chancellor also announced a government-backed guarantee scheme to help home buyers with low deposits. From April the government will provide a guarantee to lenders, who offer 95% mortgages for homes costing up to £600,000. Banks including Lloyds, NatWest, Santander, Barclays and HSBC have already signed up to the scheme with others, such as Virgin Money, expected to join.

Read more about the budget on the BBC website.