The temporary Stamp Duty Land Tax (SDLT) holiday was created to help boost the housing market, by saving buyers Stamp Duty on properties valued under £500,000. This created the busiest housing market of the decade, with XYZ Law concluding a record number of completions. With the SDLT holiday having ended, a new SDLT scheme has been set up temporarily which is scheduled to run until September 2021. This scheme involves tapering, where a maximum of £2,500 can be saved on purchases above £250,000. From October 2021, this value will fall back to the normal £125,000 level.
Whilst the intended effect of the SDLT holiday was to stimulate demand in the housing market, the demand outpaced the supply resulting in inflated housing prices. The above average housing prices meant that any potential savings from the SDLT holiday were consumed by the inflated housing market.
It appears likely that following the end of SDLT relief in October 2021, the housing market will stabilise and property prices will reach pre-SDLT holiday levels, although we believe the number of completions will begin to decrease.
To work out the current SDLT of a property you are looking to purchase, please visit the SDLT Calculator.