Extend the stamp duty holiday now
The property sector was delighted when Rishi Sunak announced a temporary reduction in Stamp duty in July 2020, which was quickly followed by similar announcements relating to Land and Buildings Transaction Tax in Scotland and Land Transaction Tax in Wales.
Whilst Covid restrictions are still at their highest levels since May, and infections and sadly deaths are peaking, the light at the end of the tunnel is the three approved vaccinations which are being rolled out across the UK. With suggestion that the most vulnerable in society being treated in March, it will great to think that the worst of the pandemic will then be behind us and a financial recovery can commence. Regrettably that will coincide with the end of the purchase tax holiday, designed to fuel that recovery, will end.
Elmhurst is calling on the regional governments to extend the property purchase tax now.
With the sales process taking at least three months, homes that are not yet sold are unlikely to complete before the end of March. Therefore if the holiday is allowed to end before the recovery has even started, the policy will have been for nothing.Sign the Petition
The pandemic has meant that many homeowners can, through homeworking, job loss or career change, move home. Meaning that the demand is there but financial uncertainty, and a lack of job security, exacerbated by property purchase taxes, may make some reluctant to commit without this financial incentive.
The great news for government is that by reducing property purchase taxes they may make more money as a recent study Centre for Economics and Business Research (Cebr), showed that a tax break would generate more sales and net the Treasury an additional £139m a year.
Put simply, extending the Stamp Duty Holiday will assist many buyers who are looking to move to a property that they would not otherwise be able to afford, meaning that the economy will lose at the time when growth is needed most.
Elmhurst will be working with other in the industry to push for this extension and would encourage Elmhurst members to do likewise. One easy thing that you could do is sign the petition which currently stands at 83,000 but if it were to get to 100,000 Westminster are required to discuss in parliament.