Following calls from industry professionals and homebuyers alike, many hoped for an extension of the stamp duty land tax holiday. However, the Government have confirmed they have no plans to extend the deadline beyond 31 March 2021. The news has sparked widespread disappointment across the market. Many homebuyers in England and Northern Ireland now face the reality of additional costs. This is causing concern in the market for the many purchase currently underway that may no longer be able to go through.

The launch of an official petition on the parliament website was a beacon of hope for many. At time of writing, the petition had over 23,000 signatures, enough to warrant an official response from the Government. The petition was started by a homebuyer depending on the tax holiday to complete their purchase. The individual suggests that an extension would stabilise the market, preventing numbers purchases falling through because of additional costs.

The Treasury responded:

“The government does not plan to extend this temporary relief.

“To stimulate immediate momentum in the property market and to support the jobs of people whose employment relied on custom from the property industry, the government decided to introduce a temporary Stamp Duty Land Tax (SDLT) relief.

“This relief increased the starting threshold of residential SDLT from £125,000 to £500,000 from the 8 July 2020 until 31 March 2021. Since the relief was introduced, transactions have increased and seasonally adjusted data shows that in October 2020, transactions were 8% higher than in October 2019.

“As the relief was to provide an immediate stimulus to the property market, the government does not plan to extend this relief. SDLT is an important source of government revenue, raising several billion pounds each year to help pay for the essential services the government provides.”

What does this mean for homebuyers?

With many now facing the daunting prospect of not being able to continue with their purchase, many are still calling on the government to reconsider. The market continues to react to the news, but buyers are being urged to move quickly to help their purchase meet the deadline.

How can Conveyancing Lawyers For You help?

Our dedicated team are here seven days a week to provide you with full support throughout your transaction. If you are looking to benefit from the savings afforded by the stamp duty land tax holiday, you must act swiftly. Instruct a conveyancer as soon as possible give you the best chance of completing in time. Contact us today to find out how we can help you!