The stamp duty holiday will be phased out by
October 1st 2021 but that doesn’t necessarily mean a dip for the housing market!
Let’s talk about the Stamp duty cutoff and what to expect.
The average house price has increased by 13% in the year to June, reaching a high of £245,432, according to the latest Nationwide house price index.
The lack of housing supply continues to drive up prices as buyers compete for a smaller number of homes.
From 1 October 2021, the stamp duty threshold will return to pre-Covid levels.
Will this effect first-time buyers?
First-time buyers do not have to pay this on property purchases up to £300,000.
High Street lenders are also starting to offer mortgages to borrowers with a deposit of just 5%, under a new government guarantee scheme.
The policy is designed to help more first-time buyers secure a home.
Over view for England and NI from October 1st 2021
- Up to £125,000 – no stamp duty tax applied
- The portion between £125,001 and £250,000 – 2%
- £250,001 and £925,000 – 5%
- £925,001 and £1.5m – 10%
- Above £1.5 million – 12%
To get a clearer picture check out SDLT Calculator until March 2021 – Mortgage Squared
If need further help with your mortgage give us a call on 08081 551 807.