March 2021 Stamp Duty Holiday Extension
UK house prices are continuing to increase and have performed well during Q1 2021 which is evident by the latest average house prices being up over January’s figures according the Rightmove’s House Price Index.
‘’The fact that the average house prices are increasing m-o-m is very encouraging and demonstrates the positive sentiment in the current housing market, particularly with the high levels of expected annual growth.’’ Michael Leighton, Founder & Managing Director at API Global
From our experience at API Global, which is aligned to the market news, we have seen there is a definite trend for increased demand for the regional cities away from London where essentially money goes a lot further. The Rightmove House Price Index for February shows the North West leading the way for the regions, as it was up 2.5% from January and predicted to be 7.3% up by the end of the year, beating the national average. We believe that the strong start to 2021 will only be helped by the Chancellors announcement last week to extend the Stamp Duty holiday.
Whilst mortgage lending may have been down during the first half of 2020 due to the national lockdown, the figures released by UK Finance showed that the highest level of mortgages were approved in Q4, 2020 for the last 13 years. The fact that during December residential property purchase lending was up 31% compared with the same month in 2019, shows that the market has returned with significant gusto most likely brought on by people looking to benefit from the savings offered by the stamp duty holiday.
According to the Intermediary Mortgage Lenders Association (IMLA) mortgage lending is set to rise this year despite the ongoing pandemic disruption, while household spending is set to jump once lockdown restrictions are eased. In its report, “The New Normal” IMLA says gross mortgage lending will rise to £283bn this year.
This extension to the Stamp Duty holiday is now going to benefit over 300,000 people currently waiting to complete on their properties. In recent months, the tax breaks seem to have led to the significant increase in transactions and the current year on year price increases seen across the entire residential market.
‘’It is fantastic news that all those who have applied will now be able to complete their purchase within the revised time frame and get the benefit of the stamp duty savings.’’
Michael Leighton, Founder & Managing Director at API Global
Following the announcement on Budget Day of an extension and graduated ending to the Stamp Duty holiday and the introduction of 5% deposits, Rightmove saw an immediate increase in activity and they recorded their busiest day yet. Visits to their website on the 3rd of March surpassed 9 million for the first time overtaking the previous record of 8.5 million recorded.
New extension dates
- Until 30th June 2021 there will be no Stamp Duty up to £500,000 for first time buyers.
- 1st July – 30th September 2021 the nil rate band will be £0-£250,000.
- October 2021 onwards will see the usual level £0-£125,000 nil rate band.
API Global have properties to suit the differing budgets and needs of investors, whether that be off plan investments or properties that are ready now.
We offer an end-to-end solution that guides our clients through the whole purchase process, to provide a truly hands-off investment.
For more information about our property investment opportunities please contact us.