Stamp Duty holidays were introduced by the Chancellor Rishi Sunak to provide relief to homeowners in the midst of the ongoing COVID-19 crisis. Formally known as Stamp Duty Land Tax, the levy is usually payable in England and Northern Ireland on property purchased over a certain value. At present, the threshold for Stamp Duty stands at £500,000, which is providing a valuable tax break for those moving home.
But the deadline for the holiday is set as March 31, and many could miss out if they do not take action soon.
In fact, estimations from Zoopla have suggested just 54 percent of new sales agreed during January 2021 will make it in time.
It is believed the property market will experience a spike in demand in January as homeowners rush to take advantage of the holiday.
After this, it is thought demand for properties will fade.
Such a move could have knock on effects if a person is purchasing a property in a chain.
As a result, if Britons wish to benefit from the Stamp Duty Holiday, taking action sooner rather than later on the matter is key.
For those who wish to take advantage of the holiday, there are a number of factors to bear in mind.
Britons should give themselves plenty of time to sell the property to give them the best chance of taking advantage of the holiday.
Indeed, a vaccine may also help key areas of the economy to progress.
But high loan to value mortgages and payment holidays have been considered by the organisation as key issues to bear in mind.
The report read: “Lenders have reduced the availability of home loans for those with small deposits which is impacting first time buyer demand.
“We expect lenders to return to higher LTV lending in 2021, but not initially at the scale and competitive pricing seen in recent years.”