Will the Stamp Duty Holiday cause property prices to drop? Experts weigh in on the topic.
Will house values fall as a result of the Stamp Duty Holiday? Experts offer their opinions on the subject.
HOUSE prices have risen sharply during the government shutdown, with the Stamp Duty holiday encouraging many people to migrate. Will prices decline once the Stamp Duty Holiday expires?
The Stamp Duty Holiday was established by Chancellor Rishi Sunak in July of last year, and it was supposed to end on March 31, 2021. Mr Sunak, on the other hand, stated in this year’s Budget that the break will be extended and tapered rather than terminating abruptly.
The Stamp Duty Holiday is now in force at a reduced rate from July 1 to September 30, 2021.
On homes worth up to £250,000, buyers in England will be exempt from paying Stamp Duty.
From October 1, however, the zero rate band will revert to its original standard level of £125,000.
According to experts, many people still wish to transfer house given that the Stamp Duty Holiday is still in effect.
“The UK property market has had an 18-month like no other, but some may be wondering how house values will suffer now that the Stamp Duty holiday is over,” said Sam Mitchell, CEO of online estate company Strike.
“Remember that the tapering off period lasts until the end of September, so residences valued less than £250,000 can still benefit from the reduction.
“In addition, there are other incentives at work to keep the housing market afloat, such as a 95 percent increase in mortgage offers combined with low interest rates.
“The truth is that the pandemic has caused many people to change their lives, resulting in altering property needs.
“While some individuals have returned to work, we are still seeing a rise in people searching for a more rural place with more space – and this trend is set to continue for the foreseeable future.” It’s difficult to say how the Stamp Duty Holiday, which ends in September, will effect house values.
Some real estate experts, however, predict that the end of the Stamp Duty Holiday will result in a drop in property values.
“For the first time in a long time, house prices have begun to fall,” said Pete Mugleston, MD and mortgage expert at www.onlinemortgageadvisor.co.uk.
“Those attempting to sell their homes won’t be pleased that property values have declined, even if it’s only by a few percent.”Brinkwire Summary News”.