Should the Stamp Duty Holiday get you packing?

October 12, 2020Categories: Selling, Buying
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Even though we’re living in strange times, the government would like to keep us moving. Why? Well, an active housing market is important to the health of the economy. That’s why the Chancellor has introduced a Stamp Duty ‘holiday’, where anyone buying their main home pays no stamp duty up to £500,000. That’s a saving of up to £15,000! However...

Timing is key!

The Stamp Duty holiday only lasts until 31 March 2021. That means you need to start thinking about getting your property valued and onto the market now, and if required, look into the positive effect the saving may have on your mortgage options. There’s been a relative shortage of properties for a while. We’ve been talking to many homeowners who’ve been nervous about putting their houses on the market in case they can’t find anywhere to move to. This is a vicious circle, as the more people who don’t put their houses up for sale, the fewer houses there are to choose from.

And the other thing that’s been holding people back is the overall cost of moving, and more recently the current uncertainty affecting us all of course. As a result, many people who had considered moving have stayed where they are, using the money that would have paid for Stamp Duty on improving their current home. But now, with the Stamp Duty saving and more choice, maybe a move is more feasible?

Why wait? Get a valuation now.

The Stamp Duty holiday is a great opportunity to ‘pay less overall’ for a house. What we’re hearing quite often, here in York, is that many of the people who’ve been working from home for a while might carry on doing so for the foreseeable future. Businesses are adapting, which means employees are changing the way they’re thinking about working too. In fact, many people are now enjoying the idea of working from home, albeit temporarily, some for part of the week and others full time.

Likewise, it has become less important to travel to an office every day and as a result we have seen people considering a move out into the country. We also know that homes don’t expand in size overnight so families are also thinking this might be the right time to make the move. The good news is, this means we are seeing a lot more properties coming onto the market, which is providing much more choice again.

This should give you confidence to start making your move, but you do need to take action now to have the best chance of everything completing by the Stamp Duty deadline. Ideally, if your home is under offer (with a complete chain above and below it) before Christmas, then there should be plenty of time to get it through before the end of March. Even selling in January may give you enough time as long as everyone in the process is on their game! And for clarity, you must complete your sale by 31st March, not just exchange contracts, to receive the discount. There is no indication at present that the Stamp Duty holiday will continue after 31 March 2021, so if you have been thinking about moving home for a while, now is the time to take action. Why not start with a valuation. Call us on 01904 621532 to arrange a no obligation market valuation, and don’t worry we are taking all the necessary steps to make your family’s health and safety our priority.

And if you would like advice on your mortgage options, please contact our sister company MAPIO Financial on 01904 235000.

Prefer to watch a video?

Watch now to find out the key information about the Stamp Duty Holiday

Property Value Old Rates During Stamp Duty Holiday*
£100,000 0 0
£200,000 £1,500 0
£300,000 £5,000 0
£400,000 £10,000 0
£500,000 £15,000 0
£600,000 £20,000 £5,000
£700,000 £25,000 £10,000
£800,000 £30,000 £15,000
£900,000 £35,000 £20,000
£1,000,000 £43,750 £28,750

*The Stamp Duty Holiday ends on 31st March 2021.

Above numbers are for property purchase of a main home. They apply only in England and to first time buyers and movers.

Landlords and second home buyers are also eligible but still have to pay the extra 3% of Stamp Duty they were charged under the previous rules.

Written by Scott Anscomb – Managing Director (Your Move Anscombs - York)

Read the Your Move Anscombs magazine for more interesting articles from the team.