Stamp Duty Holiday ends, new rates in place
The 14-month Stamp Duty Land Tax (SDLT) holiday has come to an end. The government scheme to support the housing market through Covid has proven thoroughly successful in helping to boost the market.
Our conveyancing teams in Preston, Lytham, Penwortham, Chorley and Garstang have been working flat out since the chancellor announced no Stamp Duty on the sale of properties under £500,000 from July 2020 until the end of March 2021.
This provided a saving of up to £15,000 on a £500,000 property, and at least several thousand on homes valued less than that, making buyers eager to secure a sale before the deadline.
On the ground we found instructions doubled when compared with the same period last year among people wanting to move within Lancashire. Helping make sure those clients got purchases across the line before time ran out was down to the incredible hard work and dedication of everyone in our residential property team.
Thankfully the government responded to our calls for a tapered end to the incentive and the March deadline was extended for properties under £250,000 until September 30th 2021.
Now, from October 1st 2021, the Stamp Duty threshold has returned to its pre-Covid level of £125,000, with SDLT rates increasing with the property value (see table below).
With average house prices in Lancashire around £193,500, this means many buyers in the county will still only pay a small percentage tax on the value above £125,000.
Use the government Stamp Duty Calculator to work out how much you’ll pay.
This, and the growing desire for more space and bigger gardens following multiple lockdowns, means we don’t expect demand to dip too much in the coming months.
While house prices in Lancashire have risen around 8% in the last year, there is still an appetite from people to make the move within the local area. There was a lot of DIY and home renovations over lockdown, and sellers are making the most of the uplift in prices .
We’re also seeing Lancashire increasingly become an attractive location for people who now have the ability to work from home, for whom the daily commute is a distant memory.
Nationally there has been an increase in rural moves, and within the county there is a greater desire for coastal and country living, where only a weekly or monthly visit to the office is expected, giving buyers the freedom to explore locations further afield.
For anyone needing only the odd visit to HQ in Manchester, Liverpool, Leeds or even London, Lancashire’s many cities, towns, and villages provide a wealth of wonderful options and opportunities, we should know, we live here!
For help with moving home in Lancashire and to speak to a conveyancer who knows your local area, contact Vincents Solicitors on 01772 348896.
Stamp Duty Land Tax Bands from October 1st 2021
• £0-£125,000 - 0%
• £125,001-£250,000 – 2%
• £250,001-£925,000 – 5%
• £925,001-£1,500,000 – 10%
• £1,500,001 and over – 12%
Source: BBC Online https://www.bbc.co.uk/news/business-53319433