The stamp duty holiday was announced on 8 July 2020 and was set to be in place until 31 March 2021. During this period of time, homebuyers purchasing a property up to £500,000 were exempt from paying any stamp duty.
In the wake of the COVID-19 pandemic, this holiday was announced in an effort to kick-start the property market and economy. It has led to a mini-boom with a record number of property transactions completing across the UK.
This holiday has allowed homebuyers to save up to £15,000 and created a unique opportunity for those looking to purchase a home or investment. Many property professionals saw the tax holiday as a welcome boost for the sector and has provided an uplift to the wider economy.
The debate on extending the stamp duty holiday
With this rise in property transactions, many professionals in the property industry, such as conveyancers and lenders, have been inundated with work. This has led to property completions taking much longer than usual. And some buyers and sellers are worried they won’t be able to complete their property purchase by the stamp duty holiday deadline at the end of March.
A petition lobbying for a six-month extension to the stamp duty holiday reached over 100,000 signatures, so Parliament scheduled a cross-party debate. Many MPs supported some form of an extension to the stamp duty holiday, or at the very least a tapering end.
An announcement on whether the stamp duty holiday will be extended or not is expected at the Spring Budget on 3 March. Further changes to stamp duty and capital gains could also be announced that would impact homebuyers and property investors.
Manchester’s property market
Since the stamp duty holiday was first announced, the North of England in particular has seen strong demand and house price growth. House price growth has even reached a decade high in the north-west with a 5.4% increase year-on-year, according to Zoopla’s latest House Price Index.
Despite having faced tighter restrictions than other parts of the UK in 2020, Manchester remained resilient and has continued that momentum even during the current lockdown. The city’s property market has seen strong demand, which has led house prices to rise by 6%.
There has even been a record number of Londoners moving outside of the capital, according to estate agency Hamptons. Some homebuyers and investors are looking to regional cities in the North West, such as Manchester, where they can get more for their money.
Buyers have used the stamp duty holiday as a time to reassess their housing needs. With a rise in remote working and spending more time at home due to COVID-19, many are wanting access to outdoor space, larger properties and dedicated workspace.
As demand continues to increase in Manchester, more high-quality residential developments are being brought forward with lifestyle-oriented features. The construction and development sectors are expected to be a big part of the city’s economic recovery from the pandemic.
Salboy has a range of property developments available in Manchester. We have numerous safety measures in place so prospective buyers can safely view properties under social distancing guidelines. If you would like to book a viewing at one of our developments, please send us a message online or call us on 01925 947 015.