The stamp duty holiday was a breath of fresh air for buyers and vendors alike amid the pandemic. For the 1.3 million buyers who secured their properties and completed during the period of July 2020 until June 2021 it was a blessing however for those whose purchases were continuing through the month of June, we can imagine it was a considerably stressful period.
Many were on the fence as what kind of impact the end of the stamp duty holiday would have however from recent research it is expected to continue help the property market to flourish. The stamp duty holiday encouraged a whole realm of people to either purchase their first home or take the plunge and move home and this is not going to stop with the deadline.
Studies have shown that since the start of lockdown people are now valuing space over the need for savings. As Property Industry Eye referred to it as ‘’Race for space has overtaken race to beat the stamp duty holiday’’. This also filters through into people leaving the big cities preferring to look for a new more laid-back life in smaller towns. Buyer demand is at an all-time high with the number of buyers outweighing the supply.
Although the end of the stamp duty holiday has not yet shown a negative impact in the market. Only 4% of buyers have said they would drop out of their purchase completely. Many have started lobbying for the abolishment of the stamp duty tax entirely. Property Industry Eye stated that ‘’evidence suggests were the stamp duty holiday made permanent it would boost transaction numbers, increase supply and support the demand’’. We feel as though it could have a positive effect on the market. Many vendors and purchasers are happier to sell and buy without the added pressure of a deadline.
Facts & Figures
Another unexpected side effect of the stamp duty holiday was the increase of value to the market. Research has shown that throughout the UK since July 2021 to July 2022 the average asking price of properties has gone up 4.9% which is a staggering £15,808 change. Some agencies are continuing with their own version of the stamp duty holiday, Galliard Homes in London are offering savings on all new sales across developments until January 2022.
Here at Q, we expect the market to continue strengthening into 2022 and with that being said there is not a better time to sell.
For all information relating to the stamp duty holiday please check – https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates