Prior to today’s announcement the market was doing rather well post lockdown, so the new stamp duty announcements will boost house sales further.
Nearly nine in 10 people getting on or moving up the property ladder where stamp duty applies will not need to pay the tax at all while a temporary holiday applies.
From July 15 until March 31 2021, buyers will pay no stamp duty on the first £500,000 of their purchase when they move home.
The measure, which temporarily increases the “nil rate” band of stamp duty from £125,000 to £500,000, will reduce the average stamp duty bill for a main home from £4,500 to zero. Buyers can potentially save up to £15,000.
Announcing the move, Chancellor Rishi Sunak said: “Nearly nine out of 10 people buying a main home this year will pay no stamp duty at all.”
Stamp duty applies in England and Northern Ireland and people usually pay the tax on homes priced above £125,000. Some stamp duty discounts were already in place for first-time buyers.
There are already signs that the stamp duty holiday is helping to reboot the property market.
In the first half hour after the announcement was made on Wednesday, traffic to property website Rightmove jumped by 22%.