The stamp-duty stampede

There has been a surge in people wanting to move house before the stamp duty holiday ends next year.

If you want to avoid paying stamp duty on your next property purchase you need to get a move on: there has been a surge in people keen to move. 

“Between 8 July and 8 August, the number of people registering to buy across the country was up by 38% on the same period last year, boosted by the stamp duty holiday,” says Hilary Osborne in The Guardian.

Properties are going under offer faster than ever. One in seven homes are under offer within a week of listing, according to Rightmove. 

But things slow down after that. “A ‘conveyancing log-jam’ after lockdown means that even if a sale is agreed quickly, a transaction could take six months to complete, especially if it is in a chain,” says Melissa Lawford in The Daily Telegraph.

“People thinking of coming to market really need to do so in September or early October if they want to have a chance of completing with enough time to beat the stamp duty deadline,” says Miles Shipside from Rightmove.

Stamp duty is currently suspended on properties worth up to £500,000, saving buyers as much as £15,000. However, the tax will be reinstated on 31 March 2021.

 “The stamp duty holiday has accelerated the moves of buyers who were looking for larger properties with gardens and space for home offices,” says Lawford. 

But the surge is expected to subside as unemployment rises with the end of the furlough scheme and “lenders wind down their forbearance policies this autumn”.

With the housing market rising quickly post-lockdown wise buyers may opt not to rush to embrace the stamp-duty holiday. 

“Racing simply to save 1%-3% on the cost of your next home at a time when house prices (according to Nationwide) are up 2% on last month and 3.7% on last year is futile,” says Carol Lewis in The Sunday Times.

Recommended

How the stamp duty holiday is pushing up house prices
Stamp duty

How the stamp duty holiday is pushing up house prices

Stamp duty is an awful tax and should be replaced by something better. But its temporary removal is driving up house prices, says Merryn Somerset Webb…
25 Sep 2020
Will Mailbox Reit, a new property fund with a single investment, deliver?
Property

Will Mailbox Reit, a new property fund with a single investment, deliver?

Mailbox Reit, a new real-estate investment trust set to float on a new property exchange, contains just one building. David Stevenson assesses its pro…
20 Oct 2020
Why the world is going through a property price boom
Property

Why the world is going through a property price boom

Massive monetary stimulus from central banks and governments stepping in with fiscal support have driven house prices higher around the world.
9 Oct 2020
V-shaped bounce in UK housing
Property

V-shaped bounce in UK housing

UK house prices rose 5% in the year to September, the biggest gain in four years.
9 Oct 2020

Most Popular

How will we repay our vast debt pile? Do we even need to?
Sponsored

How will we repay our vast debt pile? Do we even need to?

In his recent articles looking at different aspects of the fixed-income investing world, David Stevenson looked at inflation. Today he looks at a clos…
19 Oct 2020
The Bank of England should create a "Bitpound" digital currency and take the world by storm
Bitcoin

The Bank of England should create a "Bitpound" digital currency and take the world by storm

The Bank of England could win the race to create a respectable digital currency if it moves quickly, says Matthew Lynn.
18 Oct 2020
Negative interest rates and the end of free bank accounts
Bank accounts

Negative interest rates and the end of free bank accounts

Negative interest rates are likely to mean the introduction of fees for current accounts and other banking products. But that might make the UK bankin…
19 Oct 2020