The temporary stamp duty holiday, introduced in 2020, is set to expire on April 1st. This will see the threshold at which buyers start paying stamp duty fall from £250,000 to £125,000. Experts predict a surge in property sales before the deadline, with sellers potentially slashing prices to attract buyers and avoid paying the full tax.
From 1 April, the full stamp duty rate must be paid as the tax break, first announced in July 2020, expires
He said: “The run-up to April should be a bumper time for sellers, as there will be an increased number of buyers looking to beat the deadline.to say the least, so savvy sellers will need to ensure that their pricing is spot on if they too, don’t want to miss out. From April, the point at which buyers pay stamp duty will fall from £250,000 to £125,000. The threshold for first-time buyers will fall from £425,000 to £300,000.
“As a high proportion of sales up to £300,000 will be to first-time buyers, this suggests that the 31 March deadline will have little impact on properties marketed at up to £300,000.” Nathan Emerson, chief executive of Propertymark, said in real terms, the stamp duty increase could take around six to 12 months for a person on an average wage of £37,000 to save enough to cover, should their completion date trip over to the far side of 1 April.
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