The previous phase of the SDLT holiday (where the nil rate band was previously up to £500,000) helped stimulate the housing market, with estate agents reporting an influx of both buyers and sellers keen to take advantage of cuts to SDLT.
We have three times more buyers in our database than we would normally hold. Over The last two months the average time between someone launching a property for sale to it being sold has been eight days. We have achieved in excess of over 100 per cent on average of our asking prices. We have several properties which have sold for a staggering 20 per cent in excess of what was admittedly a conservative asking price. This is all proving the market is really strong.
With the lowering of the nil rate band, first-time buyers may also see a competitive advantage as from 1 July the special rules and rates for first-time buyers return, including first-time buyers purchasing property through a shared ownership scheme.
Stamp Duty rates from 1 July
| Purchase price | Main residence | Additional homes |
|---|---|---|
| £0 – £250,000 | 0% | 3% |
| £250,001 – £925,000 | 5% | 8% |
| £925,001 – £1.5m | 10% | 13% |
| £1.5m+ | 12% | 15% |
End of the Stamp Duty holiday
Stamp Duty Land Tax rates will return to the original rates from 1 October 2021. This means the nil rate band will be applicable only on purchases up to £125,000, and 2 per cent up to £250,000. First-time buyers, however, will continue to benefit from relief on purchases up to £300,000.
Property tax in Scotland and Wales
The Land Transaction Tax (LTT) in Wales ended on June 30 2021, under the normal rate stamp duty is applied to homes worth more than £180,000. Meanwhile, the Land and Buildings Transaction Tax (LBTT) in Scotland ended on March 31 2021.
Speed up property transactions
Propertymark has teamed up with Hipla whose distinctive platform combines our Property Information Questionnaire (PIQ) with the Law Society’s transaction protocol forms: TA6, TA7 and TA10. The PIQ is part of our sales protocol toolkit which helps to speed up transactions, reduce fall-through rates and comply with Consumer Protection Regulations.
Sales Protocol Toolkit
The toolkit offers huge potential to speed up transactions, reduce fall-through rates and comply with Consumer Protection Regulations.
