Stamp Duty Holiday – How has it affected the property market?

With the introduction of the Stamp Duty Holiday from the UK Government in July 2020, running to June 2021 for properties within the £500,000 threshold, it has been estimated that 1.3 million buyers paid no tax on their property purchase throughout that period. This calculated to 140,000 additional transactions than forecasted, based on previous years. The boost in demand and supply has greatly benefited many professions working in the industry, from estate agents, removal companies, plumbers, electricians and solicitors.

The past year has seen many industries and sectors struggle with the pandemic restrictions and pressures, but the property market has soared with UK House prices rising by 10% in the last year, which is the fastest rate of growth for 14 years. The pandemic has also meant that many city-based homeowners have felt an increase in the need for outdoor space, which has also created a large boom in more rural locations across the country.

Although it is evident that the holiday has stimulated the market, there have also been negative implications. In some cases, the increase in house prices and in turn, mortgage payments, have outweighed the saving on the SDLT. First time buyers have also found it increasingly difficult to get onto the property ladder because of how competitive the market has become.

Now the first phase of the SDLT holiday has can come to and end, we are starting to slowly see changes, with house prices dipping by 0.5% in June. Some experts are predicting a crash in the coming months and others predicting a steady case of supply and demand throughout the rest of the year. It will be interesting to see whether it truly did have a negative or positive impact on the industry as a whole.

If you need to sell your home quickly, UK Homebuyers Ltd can give you an offer, no matter what the condition or location. Our customer service line is open 24/7, just call 0800 051 7645 for a quick offer or fill in our online form to obtain your free no obligation cash offer.