One of the UK’s leading independent real estate consultancy has stated that the stamp duty holiday, which has raised the threshold in which stamp duty becomes payable, should be made permanent.
The stamp duty holiday, announced by Rishi Sunak in July, can save buyers up to £14,999 due to increasing the current threshold of £125,000 to £500,000. The average stamp duty bill will fall by £4,500, a figure that Knight Frank states “represents a meaningful discount” for the vast majority of UK buyers.
Since the introduction of the holiday, the housing industry has reported a significant uplift, including an increased demand for conveyancers. Figures from the agency state that there was a 146% increase in the average number of offers, on property valued less than £1.5m, from the five year average, between the 8 July and 3 August. The number of new prospective buyers registering had increased 100%, on property valued at less than £1.5m, during the same period.
Unfortunately, the holiday is due to end on the 31 March 2021, which Knight Frank states should not happen, but rather become a permanent change.
The agency stated:
“The holiday, it must be concluded, is working. Whether it should become a permanent arrangement is something the government should consider. More companies are announcing job cuts and any additional financial friction around the mobility of labour or people unfortunately made redundant could prove counter-productive. We have explored before how this is not a good time for taxes that are economically self-defeating. If more people are moving home, that is good for the economy well beyond the confines of the housing market.”
What has your firm’s experience been from the stamp duty holiday and do you think the stamp duty threshold should remain at £500,000?
