With the end of September here we are seeing the end of the Government stamp duty tax holiday on property purchases. The scheme, introduced last year as a stimulus to the property market, allowed purchasers a reprieve from paying stamp duty land tax at differing trigger points of value.
October 1st 2021 will see rates reset to pre-holiday levels, with the duty introduced at properties sold above £125,000 and increasing once prices reach £250,000. First time buyers are still stamp duty exempt if their property is below £300,000.
What the high levels of demand and activity, coupled with the motivation of the stamp duty holiday, have led to has been a sharp increase in property prices across the country. The big question is what happens from here?
People have known the end of the stamp duty exemption has been racing up on us for a while, yet the demand for new property has not abated. If anything, the rarity of a sufficient level of stock has led to even more competition for available property.
Forecasters are expecting price levels to maintain after the stamp duty holiday with lack of stock and a desire for more space post Lockdown two of the main driving factors within the market. An increasing amount of available property is once again coming to the market, which is likely to see a slowing of price increases.
Demand is still there for new property and if you are thinking of moving house or selling your home why not come and speak to us about your local market.