In July 2020, Chancellor Rishi Sunak announced changes to stamp duty. This temporary holiday is set to end in March 2021, and so you should take advantage now if you wish to avoid missing out.
What are the 2020/2021 stamp duty rates?
The stamp duty changes meant that no stamp duty would be paid on properties of up to £500,000. These rates are set out in the table below.
Property or lease premium or transfer value
Up to £500,000
The next £425,000 (the portion from £500,001 to £925,000)
The next £575,000 (the portion from £925,001 to £1.5 million)
The remaining amount (the portion above £1.5 million)
This stamp duty holiday for properties up to £500,000 is only temporary, with the rates set to change again on 31st March 2021.
What impact has the stamp duty holiday had?
Buyers of properties under £500,000 make a considerable saving by no longer having to pay stamp duty. This, in term, has helped sellers by creating an increase in demand and improving the value of their properties.
Dataloft and The Guild of Property Professionals shows that house prices have increased by 3.4% nationally, with growth in London and the South of England. Mortgage approvals in August were up 29% year-on-year. Nationwide reports that August 2020 saw the highest monthly price rise in 16 years.
The clock is ticking – selling your home before the March 2021 stamp duty changes
It is only a matter of months before stamp duty rates change again. The Guild of Property Professionals is urging the property sector to lobby MPs for an extension to the stamp duty holiday to avoid penalising any consumers whose sales are unlikely to compete in time. However, it looks likely that the current deadline of 31st March 2021 will remain in place.
If you are looking to take advantage of the current rates, you should act quickly to ensure your sale is complete before the March 2021 changes.
Can I sell my home in time and still achieve the right price?
There are a lot of things you'll want to consider when selling your home, and we have a guide available here that covers many of the main points.
ShineRocks was established in 1995. Unlike others, we are an independent estate agent with a firm understanding of property values throughout Purley, The Webb Estate, The Woodcote Estate, Sanderstead, South Croydon, Croydon, The Whitgift Estate, Shirley Hills, Coulsdon and Old Coulsdon, Chipstead, South Wallington and Wallington, Kenley, Warlingham, Woldingham, Whyteleafe, Kingswood, Carshalton, Caterham, Sutton and Belmont, Cheam, and Banstead.
If you are looking to take advantage of the stamp duty holiday, you must act quickly to meet the deadline. This means appointing a reputable agent, who will list your property at a reasonable price and attract suitable buyers. Some agents provide an inaccurate ‘rule of thumb’ figure to your property valuation, whilst others may try to lure you in with a figure far in excess of what your property will sell for. Unlike these, our long local experience means we are able to provide an accurate valuation that will allow you to sell your home in time. We won’t rush you, but we will provide you with the facts so you can make an informed decision about your sale.
Contact us today to find out the real value of your property, and so you can take advantage of the current rates before the March 2021 deadline.