The stamp duty holiday is extended for three more months.
The six-week option ended up becoming three months.
The stamp duty holiday will be extended for three more months until the end of June, The Times reports.
While it was reported that the ministers would opt for a six-week extension for those already in the process of buying a home, the mortgage lenders apparently told the ministers that this would not be enough to stop sales.
It seems likely that the extension is only for those who are already in the process of buying a home or who have received a mortgage offer on a certain date.
An announcement about the stamp duty is likely to be made when Chancellor Rishi Sunak delivers his budget on March 3.
“This extension will help keep the housing market booming.”
Rob Houghton, CEO of Reallymoving, said: “This policy has been instrumental in keeping the housing market moving during the pandemic, but would urge the government to restrict this extension to buyers already in the process of relocation, to that those who had his offer accepted and appointed an attorney to perform the transmission work.”
“This gives buyers who started their home buying journey on time but have been subject to delays a new window to complete.”
“While the holidays have been helpful for those in the second step and higher up the ladder, they have also caused prices to rise dramatically over the last year at the expense of first-time buyers.”
“They have faced increased competition for homes, price increases, and a tight mortgage market, leading to a 12% drop in the share of first-time buyers in the market in the second half of 2020.”
“Fostering a new flood of buyers in the market could once again have a detrimental effect on first-time buyer participation, which has recovered strongly since the beginning of the year, to 58% of transactions from a low of 46% in last September.”
The British support this decision.
Three-quarters (74%) of Britons support an extension of the stamp duty holiday, according to research by Money Supermarket.
A report in The Times has stated that the chancellor plans to end the plan until the end of June.
Jo Thornhill, Finance Expert at Money Supermarket, said: “Our research shows that there is a clear desire for the Chancellor to formally extend the stamp duty holiday beyond its current end date of March 31st.”
“The policy has clearly proven popular with buyers, spurring a boom in the market despite difficult conditions in the overall economy. And more importantly, it has eliminated another cost for many first-time buyers, making that first step on the ladder a little easier.”
“While we welcome an extension, looking ahead, a staggered deadline where profits gradually taper would avoid a ‘cliff edge’ scenario that puts pressure on the broader market.”
“Aside from the stamp duty holiday, we believe the government needs to implement longer-term support for the housing market. It’s still too difficult for first-time buyers to buy a home, and for most young adults it’s a distant dream.”
“One way to do this would be to support an increase in the availability of mortgages for those with a 5% deposit. We know that this is something the government is looking at and we hope to see their proposals in due course.”
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