Stamp Duty Changes October 2021

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14 Oct Stamp Duty Changes October 2021

On the 30th of September, the stamp duty holiday in England and Northern Ireland came to an end; hundreds of thousands of people have taken advantage of the savings since the break was introduced in July of last year (2020).

While the amount of money buyers have been able to save was reduced from July 2021, thousands more have made savings on their property purchases in the last few months.

If you are looking to buy a property now, unfortunately, you have missed the stamp duty holiday; however, there are some excellent mortgage products and further government schemes available to help depending on your circumstances.

If you would like to talk to a member of our expert team about your property options, make sure you give the leading estate agents in Colnbrook a call on 01753 683000 or email us and we’ll help you find your next home.

What’s Changed?

In July 2020 the Chancellor of the Exchequer announced that there would be a temporary stamp duty holiday in an attempt to stimulate the property market after the first Covid-19 lockdown. The tax-free allowance for homebuyers rose from £125,000 to £500,000 in England; this meant that people buying a property in England or Northern Ireland could save up to £15,000 on their usual bill.

Now that the stamp duty holiday has ended the rates have returned to their original levels. This means that if you are an existing home owner you will pay stamp duty on at the following thresholds:

  • £0-£125,000 = 0%
  • £125,001-£250,000 = 2%
  • £250,001-£925,000 = 5%
  • £925,001-£1,500,000 = 10%
  • £1,500,001+ = 12%

First-time buyers purchasing their first home for £300,000 or less will pay no stamp duty. Where the purchase price is over £300,000 but does not exceed £500,000, they will pay 5% on the amount above £300,000.

Stamp Duty and House Prices

The stamp duty holiday definitely stimulated the housing market. UK house prices rose 8% in July, according to ONS – following a record-high 13%. We saw an increased interest from buyers and sellers as they rushed to complete property deals before the scheme initially ended this past March; demand continued when extensions were granted until June and then again until the end of the holiday on September 30th.

House prices are likely to slow down with the stamp duty holiday over but don’t expect them to drop in the near future. Property experts are predicting that while price growth in 2022 will continue, it will be significantly slower than this year and 2020.

There is still a fair amount of economic uncertainty in the wake of the Covid-19 pandemic. The market could remain somewhat volatile as the economy recovers, so if you are looking to buy a property now, be prepared for some adjustments in lenders’ affordability criteria.

While house prices remain high, there are some amazing low-rate mortgage products on the market.

Contact Us

If you are looking to buy a property in and around the Colnbrook area, we are the leading independent estate agents in Colnbrook and are location experts. So, contact us on 01753 683000 or email us. You can also follow us on FacebookLinkedIn, and Instagram.