With rumours currently rife that the Stamp Duty holiday will be extended until June, many of those concerned with the housing market or construction industries will be eagerly anticipating the Chancellor’s Budget announcement next week.
The Holiday Has Boosted Revenues
Indeed, the Stamp Duty holiday has proven itself as an effective means of stimulating a lacklustre housing market. A recent report by the think tank The Centre for Policy Studies has revealed that house sales rose by a staggering 140% following the introduction of the Stamp Duty holiday last June.
The overall revenues from Stamp Duty were not compromised by the break, either. The study found that the revenues from Stamp Duty taxes actually increased in the second and third quarters of 2020, with the trend looking likely to have continued in the final quarter, too. This was a significant rise of £1.1 billion to £1.35 billion, and the number of outstanding transactions means the overall increase is expected to be higher again.
It wasn’t only the Treasury that benefited, either. The construction industry has been revitalised as a result of the Stamp Duty holiday, with work starting on a flurry of new homes around the UK. The number of new builds started during the second and third quarter of 2020 rose from 17,580 to 39,880 in an impressive increase of 134%.
The number of completed new builds also surged during this period, with a huge increase of 16,310 to 43,070 finished homes. This represents an increase of 164%, showing clearly that the Stamp Duty holiday has reinvigorated the industry. This, in turn, will help to ease the current housing crisis while providing much-needed work in a volatile financial period. You can read more about the findings of the report at https://www.business-money.com/announcements/stamp-duty-holiday-boosts-sales-by-almost-140/.
Homeowners Have Benefited
For those looking to buy or sell their home, the Stamp Duty holiday has allowed many to succeed in their dream of moving up the property ladder. The average number of days on the market have dropped, and people have regained the purchasing confidence that had lapsed following the economic uncertainties created by the Covid pandemic. Of course, anyone looking to buy or sell will still need to consider a range of other expenses, such as conveyancing costs, and it’s essential to plan these into any budget for your move. More information about these expenses can be found on sites such as https://www.samconveyancing.co.uk/news/conveyancing/conveyancing-costs-explained-3366.
As the report highlights, the Stamp Duty holiday has proved a transformational force for the housing market and the UK economy, too. House sales have boomed, and the creation of new homes promises to continue to revitalise the housing market. The boosted revenues from Stamp Duty paid on more expensive properties is a clear indication that the UK’s housing market is thriving, with house sales at their highest level since the financial crash of 2007. Many experts hope to see the Stamp Duty holiday become a permanent fixture.a