The temporary stamp duty holiday, first announced by the government on 8th July last year, means that if you are buying a home up to the value of £500,000 you will not pay any stamp duty.
The extension means you now have until 30th June to complete on the purchase to make the stamp duty saving.
Then, to smooth the transition back to normal, the nil rate band will be £250,000, double its standard level, until the end of September.
It will return to the usual threshold of £125,000 on 1st October.
The news will hopefully come as a relief to those buyers and sellers who have been desperately trying to get their sale completed in time to meet the previous deadline of 31st March.
Rightmove estimates that there are currently 628,000 sales going through, and this massive number, coupled with the challenges of conveyancers, solicitors and councils working from home, has led to delays in the home-buying process.
More home-hunters than ever before are looking to move.
We’ve been shocked by the recent high levels of activity in the housing market. And if you’ve decided that now is the right time for you to move home, you’re certainly not alone.
More people than ever before are looking to move and on Wednesday 17th February Rightmove counted over 8.5 million visits to our website – a new record high!
Research by Rightmove showed that a lack of suitable properties available is the biggest reason putting home-owners off selling their home right now, with a third (33%) of people who are planning to sell later in the year saying this is the reason they are delaying.
Other key reasons are waiting until lockdown is over (22%) and wanting to know if the stamp duty holiday is going to be extended or not (24%).
Their latest data shows there are 21% fewer new properties coming to market than this time last year.
A bigger group of 37% say the stamp duty holiday was not a factor in their decision to move, while 16% say they are likely to pull out of the sale if they don’t complete in time to make use of the stamp duty savings.
Chancellor confirms government guarantee for 95% mortgages
Rishi Sunak says 95% mortgages will be guaranteed by the government as part of government plans to turn "generation rent into generation buy".
"I’m pleased to say that several of the country’s largest lenders including Lloyds, NatWest, Santander, Barclays and HSBC will be offering these 95% mortgages from next month, and I know more, including Virgin Money will follow shortly after," the chancellor says
"A policy that gives people who can’t afford a big deposit the chance to buy their own home.
The new scheme is not restricted to first-time buyers or new-build homes, but there will be a £600,000 limit.
So with today’s announcement that the stamp duty holiday has been extended and the new incentive for first time buyers, the property market is certainly going to remain active, if not become frenzied! Property prices will certainly rise with increased demand, so we’d encourage you to book your valuation today.