Stamp duty holiday likely to be extended

Will the SDLT holiday be extended in the budget announcement?

It was reported in the media yesterday that the chancellor Rishi Sunak is likely to announce an extension to the stamp duty holiday.

It was initially reported in the Times that he will extend the SDLT holiday by three months, to the end of June.

UPDATE: The SDLT holiday has now been extended, you can read our article on this here.

The holiday was announced in July last year, as a temporary measure to help keep the property market moving during the pandemic and enables people to save up to £15,000 in tax.

You can click here to read Jen Smith’s guide to moving during the pandemic.

When will the SDLT Deadline be extended?

Details were sparse in Monday’s ‘leak’ and we expect to hear more in the coming days, however nothing will be officially confirmed until the budget announcement on 3rd March.

The chancellor has been under pressure to extend the deadline, as many groups feared the 31st March deadline would cause a ‘cliff edge’ and result in the loss of hundreds of thousands of sales.

Over 150,000 people recently signed an online petition requesting the extension. The government responded earlier this month stating that:

“The SDLT holiday was designed to be a temporary relief to stimulate market activity and support jobs that rely on the property market. The Government does not plan to extend this temporary relief.”

What will the SDLT holiday extension mean for the property market?

Clare Hallett, Head of Frettens’ residential property team:

“If confirmed, the extension will come as a welcome surprise, especially considering the government’s response to the recent petition.

We have been working with our clients towards a 31st March deadline since the announcement of the extension last July. The property market was exceptionally busy in the second half of last year as a result.

Many expected the number of sales to slow significantly in the run up to the deadline, however we have not seen that locally.

We have seen a large number of instructions in the first few weeks of 2021, very few if any of which are dependent on a completion before the deadline.

What the SDLT holiday extension could mean for buyers

Can I complete my transaction before the deadline?

Anyone looking to complete before the extended deadline who has not already started the process will be fortunate if they are able to.

Conveyancing is a complex process, involving many different parties and agencies.

With a booming market, estate agents, lenders, local authorities, search companies and solicitors are all exceptionally busy. As a result, transactions are currently taking slightly longer than usual.

The vast majority of the beneficiaries will be those who have already started their transactions and agreed a sale or purchase.

People with simple transactions or those with little or no chain may be able to start a transaction now and complete in time for the deadline, but they will certainly be cutting it fine.

SDLT holiday exceptions

SDLT for first time buyers

First time buyers are exempt from stamp duty, so the announcement doesn’t really affect them, apart from any impact on property prices.

A larger than normal proportion of our instructions this year have come from first time buyers. We believe this could be as they’ve been able to save throughout lockdown and aren’t affected by the existing deadline.

You can read Sophie Pope’s comprehensive guide for first time buyers here.

Buy to let properties and SDLT

Kym Gaisford’s article ‘Does the stamp duty holiday apply to buy to let property?’ explains the impact of the SDLT holiday on buy to let property.

SDLT extension details & property updates

Details of conditions to any extension are yet to be leaked. We will let our clients and followers know as soon as anything is announced.

To make sure you are first to know, you can sign up to our property updates here or follow us on social media.

Conveyancing Solicitors in Bournemouth, Christchurch, Ringwood

If you are looking to move and have a question about conveyancing costs or SDLT, don’t hesitate to get in touch. One of our bright team will be more than happy to answer your questions or provide you with a quote.

Alternatively, you can use our quick conveyancing calculator or read Kym Gaisford’s guide to conveyancing costs here.