Stamp Duty Holiday: What Does This Mean?
The 2020 Coronavirus pandemic has had far-reaching worldwide consequences. It has changed the way we go about our lives – including aspects that we used to take for granted.
One scheme that the government has introduced to help boost the property market hit by lockdown is the stamp duty holiday.
Why has the stamp duty holiday been introduced?
In response to the pandemic and in an attempt to support the housing market during these trying times, the Chancellor of the Exchequer announced in the Summer that the threshold at which home buyers start paying stamp duty has been significantly increased.
What does the holiday mean and how long will it last?
Put simply, those purchasing a house worth under £500,000 will no longer have to pay stamp duty. This applies to properties purchased before 31st March 2021. This threshold is a substantial increase from the initial minimum purchase which was £125,000.
This results in substantial savings for home buyers, did you know that if you were to purchase a house for £400,000, this would cost you £10,000 in stamp duty costs? (Source: Property Mark). Because of the stamp duty holiday, this cost will no longer apply, saving you ten thousand pounds and more!
“Stamp duty holidays are a tried-and-tested way to support housing market activity. [This] will ensure almost nine in ten sales will be free of the tax.” – Richard Donnell, Zoopla (Source: Unbiased)
Warrington Mortgage Centre is here to offer you expert advice on your mortgage. Whether you’re a First Time Buyer or looking to remortgage, we are here to help. Contact our friendly team today!
Disclaimer: As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.