The stamp duty holiday extension announced in the 2021 Budget by Chancellor Rishi Sunak should ease the lack of housing supply in Peterborough.
The extension will last until the end of June this year. It will kickstart the low to mid-range housing market, as homeowners will find it easier to obtain mortgages and upsize, according to bosses at Wilson & Co Homes.
“Some buyers are finding getting a mortgage difficult at the moment,” said Daniel Wilson, director of Wilson & Co Homes. “The stamp duty holiday extension will help buyers to use their savings as greater deposits, instead of paying for the stamp duty tax, which usually can’t be borrowed funds.”
When the stamp duty holiday finishes in June the threshold will reduce to £250,000 until the end of September. This is double the normal threshold before the initial holiday was announced.
The holiday was first announced in July last year to help those financially affected by Covid-19, and to boost the housing market.
“Over the last 12 months, we’ve seen homeowners put their moving plans on hold,” said Daniel Wilson. “They seem to be waiting it out and seeing what the end of the third lockdown brings. This stamp duty holiday extension may prompt them to re-start their plans to move, and put their homes on the market. This will supply some much-needed housing stock to the Peterborough property market.”
Property market boost
This stamp duty holiday extension will not only ease pressure on solicitors trying to push property sales through by the end of March. It will also help boost the number of homes available at the higher end of the property market in Peterborough.
The announcement will help to level out the supply and demand curve of premium homes, according to Daniel Wilson.
“More homeowners selling their homes to move into one more suitable will directly affect the higher end of the housing market,” he said.
“Those selling their homes will look to purchase more expensive, larger properties. This will, in turn, increase the demand for homes in the higher price brackets.”
Wilson & Co Homes and other agents across the region have welcomed the stamp duty holiday extension.
However, there is a slight concern it will simply create another ‘cliff-edge’ when the extension ends. It leaves buyers rushing to try to get their property sales through to take advantage of the tax holiday.
WORDS Daniel Wilson