We have all been on holiday and wished that we could have it last that little bit longer.
The beautiful weather, gorgeous scenery and great food can be enough to make anybody wish for just that little extension. Holidays are nice because they allow us to escape from our day-to-day lives, and take advantage of what that has to offer.
In the mortgage world, we are reaching the stage where the stamp duty holiday is in those final reaches. It’s the equivalent of knowing the bartender at the hotel by name, but also knowing that you will be back in the office again on Monday.
The stamp duty holiday is nearing its conclusion, with the current date for its expiration set for 31st March 2021. But there is a growing momentum around the possibility of it being extended, which if it comes to pass, would be great news for potential buyers.
What’s the situation with Stamp Duty at present?
The Stamp Duty Holiday commenced in July 2020, and meant that the tax levied on single property purchases would not have to be paid for many buyers.
As a bid to keep the housing market moving during the COVID-19 pandemic, the holiday would apply for any property purchase of less than £500,000. This meant that many buyers avoided additional costs, providing an extra incentive to keep their house plans moving during the difficult times we have endured.
The date for stamp duty’s reintroduction however is set for 31st March, less than two months away. As it stands, house purchases after this date would revert to the way they were pre-holiday, meaning if Stamp Duty was applicable, then buyers will have to pay up.
Might the Stamp Duty Holiday be extended?
Plenty of people who are considering a house purchase in 2021 will be hoping so. And there’s growing support for its extension among people in high places.
A virtual debate among MPs this week saw cross-party support given to the idea of extending or tapering the holiday. This took place on the back of a petition for the Stamp Duty Holiday to be extended which was signed by more 140,000 people.
Ideas brought to the table during this debate included keeping the stamp duty limit at £500,000, extending it to a date further in the future, and allowing anybody who commence a purchase before 31st March to still capitalise on the benefits of the holiday.
One Conservative MP said during the meeting that as many as 42% of buyers would be less willing to continue their purchase without the stamp duty holiday, while another highlighted that as many as 200,000 buyers were likely to miss the holiday if it wasn’t extended.
This kind of stance and call from MPs puts undoubted pressure on the government to extend the holiday and enable more time for the stamp duty holiday to be capitalised upon.
When will we know if an extension is to be given?
The date for the diary for anybody interested is 3rd March, when a decision on stamp duty will likely form part of the 2021 Budget.
In the meantime, people seeking contractor mortgages and freelancer mortgages, as well as residential mortgage buyers, can take advantage of the serious benefits the stamp duty holiday brings.
Time will tell if it is indeed extended, but as a buyer with an interest in the market at present, it would be a positive if it was.
