A WOKINGHAM estate agency has welcomed the new stamp duty extension, but is worried it will create uncertainty later this year.
Daniel Lawry, director of Property Assistant, said the government’s spring budget has introduced new measures which will “ease the lack of housing supply” in the borough.
However, he is worried it will create a “cliff-edge” in September if people rush to sell their properties before the tax holiday ends.
In last week’s budget announcement, the government revealed plans to extend the stamp duty holiday.
Originally set to end on Wednesday, March 31, it has now been extended until the end of September.
Rishi Sunak, chancellor of the exchequer, said this will save house sales from falling through.
“The stamp duty cut has helped hundreds of thousands of people buy a home and supported the economy at a critical time,” he said.
“But due to the sheer volume of transactions we’re now seeing, many purchases won’t be complete in time for the end of March.”
And Mr Lawry said that despite concerns, the extension is welcome.
“Over the last 12 months, we’ve seen homeowners put their moving plans on hold,” he explained.
“Some buyers are finding getting a mortgage difficult at the moment.
“The extension will help buyers to use their savings as greater deposits, instead of paying for the tax.
He hopes the announcement will now put some “much-needed stock” on Wokingham’s property market.
Last week, the government also announced the launch of a mortgage guarantee scheme, to support first-time buyers stepping onto the property ladder.
This will see more lenders offer government-backed 95% mortgages on properties worth up to £600,000.
Lucy Ludlow, regional sales director at Bloor Homes Southern, said this announcement brings “certainty” to new buyers in need of a boost.
“It will help many people take a step on or up the property ladder,” she said.
The stamp duty holiday was introduced in July 2020, to kickstart the housing market after the first lockdown.
Currently, homebuyers in England and Northern Ireland are not taxed on the first £500,000 of their property price. The threshold is normally £125,000.
Under the latest extension, the tax-free threshold will fall to £250,000 from July through until September 2021, before returning to £125,000.
