Stamp Duty Holiday ending on 31 March 2021
The stamp duty holiday on all properties bought under £500,000 will come to and end on 31 March 2021. However, there is growing concern that this will result in significant sales falling through. Many transactions are taking much longer than usual due to the extremely high demand seen during the coronavirus pandemic. Property campaign groupm, Propertymark, are asking the government now to extend this holiday to protect the property market.
Property sector support package – Propertymark Campaign
Propertymark are campaigning for the government’s property support package to continue after March 2021. The association was formed in 2017 to raise standards in the property industry.
They are urging the government to continue the tax holiday introduced during the coronavirus pandemic. Propertymark argue these measures helped to drive high levels of activity in the market this year. They are asking for:
- Include commission in furlough pay
- Business Rate Relief
- Property sector re-opening first
- Property Tax Holiday
Propertymark’s main worry is that many sales will fall through as we near the 31 March 2021 deadline. After 31 March 2021 stamp duty will be reintroduced for all house sales meaning people could be facing extra costs that could be £000s.
Stamp Duty Holiday
They report that average costs to move house comes to £8,885. Therefore, it could lead homebuyers to pull out of sales if unexpected costs such as stamp duty are added. Propertymark’s campaign asked everyone to post the following on social media to raise awareness:
- Keep the momentum in the property market going. Join the campaign to extend the holiday on property tax #keepthemarketmoving
- We are backing the campaign to extend the holiday on property tax to avoid price falls and a sudden loss of momentum in the market – Propertymark
- The Government needs to extend the cut to property taxes to support home movers.
NAEA Propertymark Chief Executive, Mark Howard, said “The boom, caused by the property tax holiday, has been hugely beneficial for the housing market; however, the property tax cliff edge on 31 March 2021 could cause thousands of sales to fall at the final hurdle and have a knock-on and drastic effect on the housing market which has recovered well from the COVID-19 slump”