4
Sep
Stamp Duty
Stamp Duty holiday to come to an end
The Stamp Duty holiday will end later this year
The stamp duty holiday, which has saved property buyers
thousands of pounds in taxes, is to finish at the end of the
year.
The government enacted the break that frees buyers of an
obligation to pay stamp tax if the property they purchase is under
£175,000.
As the best deals are going to mortgage customers with a deposit
of around 25 per cent, the discount worth as much as £1,750
could be a big help to some buyers.
Opendoor Mortgages is encouraging those looking to purchase a
home to act now, if possible.
“As house purchases can take months to complete it is
make-your-mind-up time for those considering buying a
property,” said Opendoor’s Richard Foster.
He continued: “With house prices now holding up more
strongly and in some cases rising, the stamp duty holiday will
prove to act as a greater incentive as the deadline
approaches.”
There has been speculation that the government will extend the
deal to further boost the mortgage market.
In recent months, there have been an increased number of
mortgage agreements for first-time buyers and prices have seen a
slight uptick.
It would be beneficial for the market if the current stamp duty
was left in place or even better that the tires were made more
equal.
Currently, stamp duty is divided into tiers from under
£175,000, between £175,000 and £250,000, between
£250,000 and £500,000 and above £500,000. The rates
are zero, one, three and four per cent respectively.
Members of the property and mortgage industries have long called
on the government for a fairer system of stamp duty, where fixed
thresholds are replaced with a more fluid set of charges – so
preventing artificial price levels at each stamp duty
threshold.
Any changes – or an extension to the stamp duty holiday
– will come in the chancellor's pre-Budget report expected
this autumn.