The government has announced in the Spring Budget that the stamp duty holiday deadline will be extended until the end of June. This news has come as a huge relief to those buyers that were desperately trying to get their sale completed on time to meet the previous deadline of the end of this month.
But how does the stamp duty holiday extension affect you if you are buying a new house in Peterborough?
What Is The Temporary Stamp Duty Holiday?
As we explained in our earlier blog post, the stamp duty holiday means that if you are buying a home up to the value of £500,000 you will not pay any stamp duty. This temporary stamp duty holiday was originally announced in July 2020 with a deadline of 31st March 2021.
The extension on the stamp duty holiday means that you now have until the 30th June to complete the house purchase in Peterborough. You will still be able to make that stamp duty saving up until the end of June this year.
What Happens To Stamp Duty After 30th June?
After 30th June the government have planned a smooth transition back to normal. The nil rate band will be £250,000. This is double its standard level and will be the case until the end of September 2021. On the 1st October 2021, the stamp duty will return to its usual threshold of £125,000. It’s important to note, this has only been announced for England and Northern Ireland. There are different stamp duty rules for buying homes in Wales and Scotland.
How Will The Extended Stamp Duty Holiday Affect Home Buyers?
According to Chancellor Rishi Sunak, the average stamp duty bill should fall by £4,500. It is thought that 90% of home buyers are expected to pay no stamp duty at all during this stamp duty holiday extension.
Will The Extended Stamp Duty Holiday Apply To Second Homes or Buy-To-Let Properties?
Those people buying second homes or buy-to-let properties will be eligible to benefit from the stamp duty holiday extension. However, these home buyers will still have to pay the 3% extra duty for second homes on the full purchase price.
If you have been thinking about buying a new home and think that now is the time, with the stamp duty holiday extension in place, call our team of estate agents now. Our house sales team will take the time to understand what you want from your next home and find the perfect property in Peterborough for you.