Stamp Duty Holiday Deadline Could Be a Game Changer or Not to Housing Market

Stamp Duty Holiday Deadline Could Be a Game Changer or Not to Housing Market

There are many discussions, opinions, and statistics being shared concerning the upcoming deadline to the Stamp Duty Holiday. The tax discount was offered as a remedy to keep the UK housing market moving during the pandemic and lockdowns. It turned out to offer a boost to the market, but how much of a boost is the center of the discussion. It matters because the weeks are counting down until the first discount reduction deadline approaches in the end of June and the final deadline in September. The highly discussed issue is to determine if the housing market will stay active or to the other extreme come to a screeching halt.

The stamp duty holiday does appear to have offered a boost to the housing market. As the March deadline approached and the extension was yet to be announced many rushed to mortgage and take advantage of the savings. Then there was a small slowdown in the final weeks. Once the deadline extension was announced the lull in the market picked up again. 

Numerous housing market reports have shown that the market is amazingly busy. Demand far outweighs supply in the market and the average housing price has broken all-time highs month after month.

The housing market is so active and prices rising so much that there is a worry that first time buyers are once again being pushed out of the market.

With low interest rates, competitive lenders, and the stamp duty holiday there is strong motivation for home buyers. However, it is likely that the stamp duty holiday reduction with the June deadline will not cause a major halt to the dream home buyers have to get their desired home. 

The pandemic reshaped the way people use and view their home. Renters want to save money and climb onto the property ladder with low interest rates available that will not be around forever. Homeowners want to move home and find dwellings that better suit their new pandemic and post pandemic wants and needs. 

We will certainly see in just a few weeks as the surge to buy will come face to face with the deadline. If the savings is enough to deter or push buyers away it will be just as surprising as the housing market flourishing during a global pandemic.

Obligation Free Remortgage Quotations

Get a Quote »