Chancellor Rishi Sunak ended weeks of speculation by holding an emergency ‘Mini-Budget’ today on Wednesday 8th July. The budget’s focus was very much on job creation schemes and getting the economy going again as we slowly ease out of the coronavirus lockdown. The stamp duty holiday until 31st March 3021 was a welcomed announcement for those still looking to purchase property this summer.
As part of the economic stimulus package the chancellor announced plans to temporarily cut stamp duty for properties worth up to £500,000 in a bid to reinvigorate the housing market after it was brought to a standstill by the coronavirus lockdown. It is believed this will result in 90% of U.K buyers not paying any stamp duty during the holiday period.
The announcement comes after estate agents and property industry groups across the U.K called for the Government to grant a stamp duty holiday and help encourage nervous buyers to proceed with purchases.
Bendles’ owned estate agents, Tiffen & Co, were amongst those who were pleased by the news of a temporary stamp duty cut.
Neil Emmerson, Managing Director of Tiffen & Co, said; “This is a very welcomed announcement today. The high threshold of half a million will benefit a range of buyers from those looking to upsize to first-time buyers, giving the housing marketing across Cumbria a timely boost. This has been helped further by the changes immediate implementation which will let buyers proceed straight away rather than delaying until the autumn.
“Since the easing of lockdown measures were announced we have been very busy with potential buyers asking for particulars and requesting property viewings both in person and via virtual tours. Over the last four weeks we have accepted offers on 32 properties across the region, an impressive 28% increase on the same period last year. Today’s announcement should keep that momentum going and see us continue to complete a decent volume of transactions over the coming months.”
The Chancellor’s last Budget back in March managed to pass by without any significant changes to stamp duty. However, there was the anticipated announcement of an additional two percent stamp duty surcharge for non-UK resident buyers, which still looks set to be introduced as of April 2021, meaning the international buyers’ market is likely to remain fairly static amidst the continued climate of uncertainty.