The stamp duty holiday may have offered a boost to many home buyers but there are concerns its abrupt end on 31 March 2021 will cause a ‘cliff-edge’ scenario and create a new swathe of problems. Peter Joseph of Home Legal Direct explains
As 2020 draws to a close, many are reflecting on the challenges we have all faced this year. It was impossible to predict the true extent of what Covid-19 would bring. The ‘new normal’ has created many changes to our daily lives.
Although we have seen positive steps like the Stamp Duty Land Tax holiday and the Eat Out to Help Out scheme, some adjustments have been harder than others.
For many, the New Year allows people to put 2020 behind them, with many looking to start afresh in a new property to mark the start of 2021.
The first national lockdown triggered pent-up demand in the market. As we approach the start of 2021 and the planned end of the stamp duty land tax holiday, the necessity for housing is still there.
However, many people have faced unemployment and other financial setbacks because of the pandemic. For those individuals, a new home is nothing more than a pipedream, unless the government steps in.
A petition has been launched on the official Parliament website calling for an extension of the stamp duty holiday.
The petition, started by Jonathan Steel, reads: “Extending the Stamp Duty Holiday for an additional six months will assist many buyers who are looking to move to a property that they will not be able to afford otherwise. This will help to stabilise the housing market.”
At the time of writing, the petition has acquired over 16,000 signatures. This means the government must now make a formal response.
An article published by Property Industry Eye reveals that MPs are starting to show support for an extension. This is a positive sign that chancellor, Rishi Sunak, may reconsider the deadline.
An extension, or at least a tapered end, to the tax break would benefit many prospective homebuyers.
It will also help industry professionals clear the backlog of cases that have built up following the release of previously repressed demand. Preventing a ‘cliff-edge’ in the property market, a cause of growing concern among industry professionals will keep the market moving.
After a turbulent year, this is good news as we approach 2021. Although the clock is still ticking on the stamp duty land tax holiday, news that MPs are starting to show support is a good sign. 2020 was difficult, but it propelled some to take steps to a more personally fulfilling way of life.
It caused people to look at their personal and professional lives and fuelled them to make changes. Many of these individuals were spurred to move home, after realising a change in location or the need for more space would benefit them.
Home Legal Direct is here to support you on your property journey. If you are looking to benefit from the stamp duty land tax holiday before the proposed deadline instructing a conveyancer as soon as possible is a great way of improving your chance of completing in time.
Peter Joseph is CEO at Home Legal Direct
