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.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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.
-
Scammers steal over £600 million from Brits - how to protect yourselfFraud cases in the first half of the year surged by 17% compared to the same period in 2024. Is your money at risk?
-
Financial support for carers: what can you get?Unpaid carers miss out on an average £6,400 a year in annual salary by cutting work to support loved ones. We explore benefits that can plug the financial gap.
-
Klarna leads a financial revolution – should investors buy?Klarna has ambitions to rewire the global payments system and has huge growth potential
-
Are venture-capital trusts worth investing in?Venture-capital trusts are a tax-efficient way to invest in early-stage companies. But are they worth the risk?
-
Can Rachel Reeves save the City?Opinion Chancellor Rachel Reeves is mulling a tax cut, which would be welcome – but it’s nowhere near enough, says Matthew Lynn
-
'Gen Z is facing an AI jobs bloodbath'Opinion It has always been tough to get your first job, but this year, it's proving tougher than ever. AI is to blame, says Matthew Lynn
-
Beazley: a compelling specialist insurerThe insurer Beazley is unusually profitable at present, and that looks set to continue. The stock is also a valuable portfolio diversifier, says Jamie Ward
-
Is Britain heading for a big debt crisis?Opinion Things are not yet as bad as some reports have claimed. But they sure aren’t rosy either, says Julian Jessop
-
What is the Enterprise Investment Scheme and should you have one?The Enterprise Investment Scheme is tax-efficient and potentially lucrative. Taking a chance on the scheme could trim your family’s IHT bill, says David Prosser
-
What are wealth taxes and would they work in Britain?The Treasury is short of cash and mulling over how it can get its hands on more money to plug the gap. Could wealth taxes do the trick?
