A few big announcements that will impact the property market are expected in the Spring Budget. Buyers, sellers and property professionals are awaiting a decision on the stamp duty holiday deadline.
Chancellor Rishi Sunak will deliver the annual Spring Budget on Wednesday 3 March just after midday. The Spring Statement, which is a mini-budget setting out the country’s financial situation and plans for the year ahead, will likely include some important announcements impacting the property market.
As the COVID-19 pandemic is putting a toll on public finances, many are expecting tax rises. There are rumours circulating about potential announcements about the stamp duty holiday, capital gains tax and other tax reform. Rishi Sunak will also likely announce proposals for financial support.
Many will be eagerly awaiting an announcement on the stamp duty holiday deadline during the Spring Budget. Announced in July, the stamp duty holiday has meant buyers haven’t had to pay any stamp duty on homes worth £500,000 or less. This applies to residential property. However, second home-buyers and buy-to-let investors have still had to pay 3% stamp duty.
This tax holiday has provided the opportunity for buyers to save up to £15,000. Since the announcement, the property market has been booming with a record volume of transactions. However, this has put mounting pressure on conveyancers, lenders and surveyors and has led to buyers and sellers facing significant delays.
The stamp duty holiday deadline is 31 March. Property buyers who were expecting to complete before then could face unexpected tax bills. This could also lead to a substantial number of property transactions falling through.