In a bid to boost the housing market, the Stamp Duty holiday in England and Northern Ireland has officially been extended until 30 June 2021. This is great news for buyers who were trying to push through their purchases before the original deadline of 31 March 2021.
Stamp Duty is a type of tax that usually comes with buying a residential property over £125,000, or £300,000 for first-time buyers. It applies to both freehold and leasehold properties, as well as cash buyers and those with mortgages.
Originally introduced in July 2020, the Stamp Duty Holiday means buyers no longer need to pay Stamp Duty on properties under £500,000. If the value of the property is more than this, then buyers will only be taxed on the amount that remains above this threshold.
The Stamp Duty Holiday was originally put in place to help potential buyers affected by the pandemic, as well as to give the property market a boost. However, the success of the holiday paired with Covid restrictions led to significant delays in completion. With this in mind, the holiday has now been extended to help prevent those moves from falling through.
Stamp Duty is one of the biggest fees that comes with buying a house, and can often cost more than all your other fees combined. This new extension means that buyers can save on average £4,500 each, and £15,000 on homes over the £500,000 threshold.
According to the new plans, the current £500,000 threshold will apply until 30 June 2021. This will then be reduced to £250,000 between 1 July and 30 September. From 1 October onwards, the holiday will end and Stamp Duty fees will return to normal, applying to properties over £125,000.
Properties in and around Telford fall under the national average, sitting at approximately £181,000 for all homes and £276,000 for detached properties. This means that anyone looking to move to the area has until September 2021 to complete their purchase and benefit from up to £2,500 in savings.
There are still delays in mortgage applications, local searches and conveyancing services, so it’s best to get the ball rolling as soon as possible. If you’re thinking about moving, then contact Coleman Estates today. With expert advice from Telford’s best-rated estate agent, our team will guide you through the purchasing process and help you find your dream home.
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