Stamp duty will not be payable on property purchases up to a value of £500,000 in England and Northern Ireland until April 2021, the chancellor has announced.
The chancellor of the exchequer has provided a boost to property buyers and the entire housing market in England and Northern Ireland by announcing a temporary stamp duty holiday.
As part of an emergency mini-budget designed to mitigate the effects of the coronavirus pandemic on the economy, Rishi Sunak confirmed that the stamp duty threshold would be raised from £125,000 to £500,000 with immediate effect.
Buyers purchasing properties up to a value of £500,000 will be exempt from paying the tax until April 2021.
Speaking in the House of Commons, Mr Sunak pointed out that housing is one of the most important sectors in the UK for job creation. Construction adds some £39 billion a year to the economy, with housebuilding alone supporting nearly 750,000 jobs.
He stressed that the country needs the property market to be thriving.
“We need people feeling confident – confident to buy, sell, renovate, move and improve. That will drive growth, that will create jobs,” the chancellor continued.
“So, to capitalise the housing market and boost confidence, I have decided today to cut stamp duty.”
Mr Sunak said the change would result in savings of £4,500 on the average purchase and provide a benefit to nine out of ten buyers.
All eyes will be on the housing market in the coming months to see if the change has a beneficial impact on transaction activity and helps the sector shake off the effects of the coronavirus lockdown.
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