Stamp Duty tax: What are the recent changes to Stamp Duty and how has the stamp duty holiday impacted the property sector?
Since the start of the Covid-19 pandemic, the UK government introduced stamp duty payment holidays in response to the economic crisis. This meant that home buyers could save money when purchasing property below £500,000.
However, the stamp duty holidays and savings have now come to an end. This means that home buyers now must pay the same amount of stamp duty taxes that were in place before the stamp duty holidays were introduced. Put briefly, home buyers will be expected to pay a 2% stamp duty rate on all properties between £125,000 and £250,000. The amount you pay depends on the purpose, value and type of buyer you are.
How has the stamp duty holiday impacted the property sector?
The stamp duty holiday has had a positive impact on the property sector. House prices increased significantly as people not only benefitted from reduced taxes, but they may have had greater savings as they were less likely to spend during lockdown.
Despite the fact that the stamp duty holidays have ended, the demand for property is still high and home buyers are continuing to search for more spacious homes and properties that include a garden after the rise in remote jobs since the pandemic according to Dataloft in 2021.
The Stamp Duty holiday has had an overall positive impact on the property market. Increased savings and the rise in remote working opportunities have all contributed to the increased prices of houses.
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