The stamp-duty stampede

There has been a surge in people wanting to move house before the stamp duty holiday ends next year.

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.

Properties are going under offer faster than ever. One in seven homes are under offer within a week of listing, according to Rightmove. 

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.

Recommended

Britain’s ten most-hated shares – w/e 1 July
Stocks and shares

Britain’s ten most-hated shares – w/e 1 July

Rupert Hargreaves looks at Britain's ten most-hated shares, and what short-sellers are looking at now.
4 Jul 2022
Britain’s most-bought shares w/e 1 July
Stocks and shares

Britain’s most-bought shares w/e 1 July

A look at Britain’s most-bought shares in the week ending 1 July, providing an insight into how investors are thinking and where opportunities may lie…
4 Jul 2022
M&G offers a solid 10.1% yield – but future growth is uncertain
Share tips

M&G offers a solid 10.1% yield – but future growth is uncertain

Financial services group M&G has one of the highest dividend yields in the FTSE 100. But it’s a complicated company, and a tough one to analyse, says …
4 Jul 2022
We’re doing well on pensions – but we still need to do better
Pensions

We’re doing well on pensions – but we still need to do better

Pensions auto-enrolment has vastly increased the number of people in the UK with retirement savings. But we’re still not engaged enough, says Merryn S…
4 Jul 2022

Most Popular

Ray Dalio’s shrewd $10bn bet on the collapse of European stocks
European stockmarkets

Ray Dalio’s shrewd $10bn bet on the collapse of European stocks

Ray Dalio’s Bridgewater hedge fund is putting its money on a collapse in European stocks. It’s likely to pay off, says Matthew Lynn.
3 Jul 2022
UK house prices are definitely cooling off – but are they heading for a fall?
House prices

UK house prices are definitely cooling off – but are they heading for a fall?

UK house prices hit a fresh high in June, but as interest rates start to rise, the market is cooling John Stepek assesses just how much of an effect h…
30 Jun 2022
How to invest in copper, the most important metal in the world
Industrial metals

How to invest in copper, the most important metal in the world

As the world looks to electrify and try to move away from fossil fuels, copper looks set to be the biggest beneficiary. But how can you invest? Rupert…
30 Jun 2022