Stamp Duty Holiday Extension Confirmed
Craig Aikman, head of property for Lancashire law firm Vincents Solicitors, welcomed the announcements in today’s budget as a major boost for the Lancashire housing market.
He said the extension to the existing Stamp Duty holiday to the end of June (which removes sales tax for properties under £500,000) would help those already in the process of purchasing.
Crucially, the additional extension for homes under £250,000 until September would benefit most homebuyers across the Lancashire and the Fylde Coast over the next six months.
He said: “The Stamp Duty extension to June 30th is a welcome move for homebuyers who were likely to miss out on the March 31st deadline, and will ease the worries of those fearing a hefty tax bill if their sale is delayed over the next few weeks.
“But by simply pushing back the hard deadline by three months, there will still be buyers who are attracted by the incentive, who then miss out. Although we appreciate it being difficult to manage, we would have preferred to see transactions already in progress able to benefit regardless of the final completion date.
“The saving grace is the opportunity for buyers of properties under £250,000 to continue to benefit from 0% tax until the end of September. This is a smart move from the chancellor as it supports this key, active part of the market, and particularly benefits homebuyers in our region by giving many another six months to make the most of the Stamp Duty holiday.
“If we consider the average house price for Lancashire is £148,000 – with Blackpool at £108,200, Wyre £155,200, Fylde £187,00 and Preston £129,000 – then the reality is that a large portion of sales locally will continue to benefit from the Stamp Duty Holiday until the end of September which really is great news for our communities.
“The chancellor’s support for the lower end of the market, and first time buyers in particular, continues with the announcement of the new Mortgage Guarantee scheme which will assist those with small deposits to purchase a home.
“It was good to hear that most of the main high street lenders have already indicated they will offer 95% mortgages under the scheme, and we can see this helping to continue helping people onto the property ladder and driving the market from the ground up.”
* Land Registry figures March 2020