The government has confirmed that there will be no extension of the stamp duty tax break, beyond 31 March 2021. With the deadline just around the corner, many homebuyers now face additional costs on their purchases. Thousands of purchases are currently underway, which now risk falling through due to the prospect of additional charges.
Following the launch of an official petition on the parliament website, many hoped an extension was on the horizon. The petition has over 23,000 signatures at time of writing and calls for a six-month extension of the deadline. It suggests an extension will stabilise the market by allowing the continuation of thousands of transactions already underway.
The Treasury responded:
“The government does not plan to extend this temporary relief.
“To stimulate immediate momentum in the property market and to support the jobs of people whose employment relied on custom from the property industry, the government decided to introduce a temporary Stamp Duty Land Tax (SDLT) relief.
“This relief increased the starting threshold of residential SDLT from £125,000 to £500,000 from the 8 July 2020 until 31 March 2021. Since the relief was introduced, transactions have increased and seasonally adjusted data shows that in October 2020, transactions were 8% higher than in October 2019.
“As the relief was to provide an immediate stimulus to the property market, the government does not plan to extend this relief. SDLT is an important source of government revenue, raising several billion pounds each year to help pay for the essential services the government provides.”
What does the end of the stamp duty tax break mean for the market?
With the feeling of disappointment saturating the market, many are still calling on the government to reconsider. As professionals face a build-up of cases to push through in time, delays are being felt throughout the industry. Buyers are now faced with no choice but to act swiftly, if they want the best chance of completing in time.
How can Move Home Hub help?
Our dedicated team at Move Home Hub are available seven days a week to guide you through your transaction. Our expert, online conveyancing solution offers a quicker average turnaround time than many local solicitors. Instructing a conveyancer quickly can help give you the best chance of completing before the 31 March deadline. Contact us today to find out how Move Home Hub can help you!