The tax holiday on stamp duty rates which was introduced in July 2020, this came to an end in England and Northern Ireland at the end in September. The big change this autumn is that Stamp Duty thresholds will return to the original rate as of 1st October 2021.
There is some confusion as to what these rates are.
It means that home buyers will have to pay stamp duty on all purchases above £125,000.
However, if you a resident in the UK as well as being a residential first time buyer, and the purchase price is under £300,000, you will pay no Stamp Duty. If the purchase price is between £300,001 and £500,000, you will only pay 5% Stamp Duty on this portion. You are eligible for first time buyer’s relief. As long as you, and anyone else you are buying with are first-time buyers. However, if the price is over £500,000, the special rules for first time buyers will not apply.
You can use the government’s Stamp Duty Land Tax (SDLT) calculator to find out how much you would pay – https://www.gov.uk/stamp-duty-land-tax/residential-property-rates
Different stamp duty rules apply, depending on if already own a property, or a share in a property, or are buying an investment property. We can help you navigate your way around what stamp duty applies to you personally.
While some may be concerned that the ending of the stamp duty holiday would lead to a drop in house prices and the slowing down of the market, many disagree with this.
The property market into Autumn has been predicted to remain largely buoyant, there are many factors that are keeping the market active.
Market sentiment still remains positive. It has been observed that buyer demand has remained strong for all size properties. This has led some market experts to forecast an autumn bounce in both seller activity, and prices.
The pandemic has meant there is a race for space, and people are continuing to rethink their housing needs. People are continuing to work partly from home, and this is now factored into the working life of many.
The pandemic has also created extra savings for some, which has contributed to movement within the market, and many are looking for larger properties due their disposable income having increased by, for example saving travelling costs to work.
The Bank of England’s base rate, is currently at a historic low.
The Bank of England’s Monetary Policy Committee voted unanimously to maintain the 0.1% rate on 23 September 2021, meaning mortgage rates may remain low.
The low interest rates are contributing to very low mortgage rates. There is also the fact that mortgage providers have been believed to have relaxed their lending rules in many cases. There are a lot more low-rate mortgages available.
At Edwards Duthie Shamash, we can expertly guide you on what you liability for Stamp Duty will be, along with deal with all your residential property needs. Please contact Daveena Seepaul, Head of Residential Property for any assistance.