As the Stamp Duty Land Tax reduction, better known as the SDLT holiday, came to an end, we would like to express a tremendous and heartfelt well done to the UK’s property industry: conveyancers, estate agents, mortgage brokers, and lenders who have tirelessly worked to push the cases over the line in the past weeks.
SDLT holiday, introduced by Chancellor Rishi Sunak in July 2020, acted as a springboard and kickstarted the industry, which ground to an abrupt halt in March 2020 as a result of COVID-19. Since the introduction of Stamp Duty Land Tax reduction, British real estate experienced a mini-boom, enabling homebuyers to save on average £2000 and up to £15,000; a situation very similar to what we saw in 2008, when the then-Chancellor, Alastair Darling, proposed a suspension of stamp duty for properties worth up to £175,000.
This time the reduction of Stamp Duty Land Tax was introduced for the properties of up to £500,000, estimated to cost the Treasury a whopping £1.3 bn.
What happens now?
The SDLT holiday is gradually being phased out, but the Treasury wants to continue the growing trend within the industry by introducing reduced rates. From 1st July, stamp duty of 5% will be applicable for properties above £250,000, which will increase to 10% for properties above £925,000, and 12% for properties beyond the value of £1.5m. From the 1st of October 2021, the rates will revert to rates of SDLT that were in place prior to the 8th of July 2020.
Did Stamp Duty Land Tax reduction help the industry?
Definitely! According to Nationwide and the House Price Index, the prices of UK properties rose 13.4% in 2021 – the fastest pace since November 2004. It helped accelerate the growth of the economy impacted by the events of the last 18 months by bringing much-needed stability. It’s widely believed that the move not only helped to save thousands of jobs and businesses across the housing supply chain but provided an opportunity for DIY stores, housebuilders and tradespeople, cleaning firms, as well as providers of durable goods, such as furniture and appliances.
None of it would be possible without the property industry pulling together. Conveyancers and estate agents, mortgage brokers and lenders, as well as the service providers to the industry: everybody worked in unison to see as many transactions completed as possible, which at times proved challenging for all involved.
To all of you: our most heartfelt thank you and the most sincere well done. Without you, the industry wouldn’t be where it is now, and it’s a privilege to support you. We are always here, quietly having your back and available whenever you need us.
Not only have we seen excellent work by conveyancers and estate agents, but we’ve seen new relationships forged as they have united in a joint effort enhanced through technology.
Together, working towards the shared goal, we have reimagined conveyancing Powered by WeCOMPLETE. And this is just the beginning.