With just one week to go until the stamp duty holiday ends for good, residential property experts give their take on what the last few months have been like.
First introduced by Chancellor Rishi Sunak to inject some life into the property market following the March 2020 lockdown, the property market has seen prices soar and demand putting pressure on every aspect of the industry.
Now the stamp duty holiday is coming to an end on 30 September, many are battling to get their property transactions over the line or risk paying thousands more in stamp duty.
Not everyone has agreed the stamp duty holiday has been good for the market; first-time buyers have found it difficult to get onto the ladder during this time, with new data suggesting prices of first-time buyer homes have increased by an average of 11.7% in England in the last year.
Irwin Mitchell’s residential property specialists say many of their clients are still racing to beat the deadline despite there being just one week to go.
Helen Hutchison, residential property partner at Irwin Mitchell said: “Despite expecting a less hectic run-up to the September deadline we’ve seen that instructions have still remained high, with many wishing to take advantage of the stamp duty holiday.
“The massive pressure remains on the property industry to get as many matters through by the end of the month, even though savings are much lower than they were prior to the end of June.
“Supply is outstripping demand, not only due to the deadline but due to the change in lifestyle following the pandemic. Particularly, the north has seen a big increase in properties sold with some going for well over asking price.
“It’s possible the housing market will calm down again after next week and prices will drop, though time will tell what the long-term impact of the stamp duty holiday will be on the market.”
Irwin Mitchell’s residential property specialists warn that the clock is ticking for any transactions to be done – and it’s possible many will miss out on the deadline.
Helen added: “If a matter isn’t already nearing exchange, there’s sadly little to be done at this late stage.
“Unfortunately the deadline requires that completion takes place on or before the 30 September so even if a matter is ready to exchange, the SDLT break will only apply where the completion actually takes place before the 30th.
“First-time buyers however will continue to benefit due to the relief on properties up to a value of £500k.”