An estimated 750,000 home buyers across England are set to benefit from the Government’s stamp duty holiday, saving themselves nearly £5billion in tax ..
According to the property portal Zoopla nearly 750,000 homebuyers in England are set to benefit from the stamp duty holiday, collectively saving almost £5bn, of that 600,000 buyers who have agreed a sale from May 2020 onwards have either already taken advantage of the saving, or will do before the deadline saving on average £4,660 each assuming they complete before the end of May deadline or £2.8bn collectively. A further 140,500 people buying homes costing more than £500,000 will benefit from a reduction in the amount of stamp duty they pay saving £15,000 each, or £2.1bn in total.
So far, 2021 has recorded its strongest start to the year since 2015, and the looming stamp duty deadline does not appear to be holding back new entrants to the market, with demand up 12.4% on last year resulting in a back log of property sale completions with fears up to 70,000 sales that were agreed in 2020 are at risk of not completing in time to benefit from the stamp duty holiday unless Rishi Sunak announces an extension in the upcoming budget.
Richard Donnell, research director at Zoopla, said: “Demand for housing has started 2021 as strongly as last year with limited evidence new buyers are being put off by the proposed ending of the stamp holiday. The pandemic and lockdowns continue to stimulate households to move home and this will help soften the short-term impact when the stamp duty holiday finally ends.”