The extension, which will last until the end of June this year, will kickstart the low to mid- range housing market, as homeowners will find it easier to obtain mortgages and upsize, according to James Forrester at Barrows & Forrester.
“Some buyers are finding getting a mortgage difficult at the moment,” said James Forrester, managing director of Barrows & Forrester. “The stamp duty holiday extension will help buyers to use their savings as greater deposits, instead of paying for the stamp duty tax, which usually can’t be borrowed funds.”
When the stamp duty holiday finishes in June the threshold for paying stamp duty will reduce to £250,000 until the end of September, double the normal threshold before the initial holiday was announced.
The holiday was first announced in July last year to help those financially affected by Covid-19, and to provide a boost to the housing market.
“Over the last twelve months, we’ve seen homeowners put their moving plans on hold,” said James Forrester, managing director of Barrows & Forrester. “They seem to be waiting it out and seeing what the end of the third lockdown brings. This stamp duty holiday extension may prompt them to re-start their plans to move, and put their homes on the market, supplying some much-needed housing stock to the Birmingham property market.
This stamp duty holiday extension will not only ease pressure on solicitors trying to push property sales through by the end of March, it will also help boost the number of homes available at the higher end of the property market in Birmingham & Lichfield.
The announcement will help to level out the supply and demand curve of premium homes, according to James Forrester.
“More local families and homeowners selling their homes to move into one more suitable will directly affect the higher end of the housing market,” he said.
“Those selling their homes will look to purchase more expensive, larger properties, which will in turn increase the demand for homes in the higher price brackets.”
The stamp duty holiday extension has been welcomed by Barrows & Forrester and other agents across the region.
However, there is a slight concern it will simply create another “cliff-edge” when the extension ends, which may once again leave buyers rushing to try to get their property sales through in time to take advantage of the tax holiday.