A petition calling for the government to extend the stamp duty holiday until September 2021 has now attracted more than 63,000 signatures, up from just over 54,000 this morning.
The petition, which was started at the end of October by an individual who is looking to buy a new property, has proved popular with buyers and sellers, as well as agents, conveyancing solicitors, mortgage lenders and surveyors.
Jonathan Steel is looking to move into a new build property which is currently due to complete at the start of March 2021. But if the build is delayed past 31 March 2021 then he will not benefit from the stamp duty holiday, and this is what prompted him to launch an official petition calling for the stamp duty holiday to be extended.
“I will not be able to afford the stamp duty so will not be able to afford the house,” he said.
The government confirmed last month that it “does not plan” to extend the temporary relief offered to property buyers via the stamp duty holiday.
The government issued a statement, as part of its response to the petition, when it hit 10,000 signatures last month.
A spokesperson for HM Treasury said: “The SDLT holiday was designed to be a temporary relief to stimulate market activity and support jobs that rely on the property market. The government does not plan to extend this temporary relief.
“The COVID-19 pandemic and subsequent lockdown caused uncertainty for those buying and selling residential property and property transactions fell by as much as 50% during the first national lockdown.
“To stimulate immediate momentum in the property market and to support the jobs of people whose employment relied on custom from the property industry, the government decided to introduce a temporary Stamp Duty Land Tax (SDLT) relief. This relief increased the starting threshold of residential SDLT from £125,000 to £500,000 from the 8 July 2020 until 31 March 2021.
“Since the relief was introduced, transactions have increased and seasonally adjusted data shows that in October 2020, transactions were 8% higher than October 2019.
“As the relief was to provide an immediate stimulus to the property market, the Government does not plan to extend this relief. SDLT is an important source of government revenue, raising several billion pounds each year to help pay for the essential services the Government provides.
“The government is committed to supporting home ownership and helping people get on and move up the housing ladder. When the SDLT Holiday ends, the Government will maintain a SDLT relief for first time buyers which increases the starting threshold of residential SDLT to £300,000 for first-time buyers that purchase a property below £500,000. In addition, a new Help to Buy scheme will be introduced from 1 April 2021. This scheme will run until March 2023.
“All tax policy is kept under review and the government considers the views it receives carefully as part of that process.”
But the chancellor Rishi Sunak is under increasing pressure to extend the stamp duty holiday beyond 31 March, amid concerns that thousands of buyers could fail to complete before the deadline.
Delays are holding up homebuyers as the current lockdown places extra pressure on conveyancing solicitors, mortgage lenders and surveyors, struggling to push through purchases.
At 100,000 signatures, the petition to extend the stamp duty holiday will be considered for debate in Parliament.
So, because the developer could not guarantee his desired choice of lego set may not be constructed in time ready for a move in. Despite Mr Steel identifying his dream property some FIVE of SIX months before the SDLT holiday is due to cease. He (Steel) thinks this petition not only polarises the view of his pending disappointment for all to see, but will also allow him to stand on his soap box to make a point.
If BMW were offering their shiny vehicles without any VAT for a period of time in order to generate sales. What would be my chances of the dealership extending their promotion whilst I get my funds together as I wish to purchase a better spec vehicle? But, I could have easily bought a cheaper car within my price range to take full advantage of the generous promotion.
Given this petition was initiated way back in October, surely Mr Steel knew at that point his developer/builder would not come good in time and should have bought elsewhere. Do not expect HMRC to have the remainder of the population pick up your tax bill whilst millions face genuine hardships.
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‘considered for debate’ LOL dream on peeps
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I have yet to hear of a petition that has been debated in Parliament and been successful. It is usually debated in committee, lots of hot air generated and then rejected.
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Don’t get me wrong i would love to see Stamp Duty Holiday extended. We have done VERY well off it thus far.
However, i can’t see any point in extending it, all we are doing is kicking the can down the road. Whenever it stops will be a nightmare for buyers / sellers.
Its been a nice bonus, and that’s the way we should view it, a bonus.
I know a number of agents that have opened further offices off the back of the last 9 months trading, its just foolish and they will suffer the most come April. Just shows good agents don’t always make good business people.
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With respect Mr Steel if you are so stretched that ,“I will not be able to afford the stamp duty so will not be able to afford the house.” you probably should not buy it anyway.
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The Stamp Duty holiday is just one element that has stimulated demand while pent-up demand caused by Brexit since June 2016, the strategic shift in demand we have witnessed near the coast from those now adapted to work from home are 2 others. Following the cliff-edge negotiations, Brexit certainty may now restore typical demand levels.
The only basis on which I can see the Government willing to extend the holiday would be in exchange for a period of true lockdown, as we had in March – May last year.
Many of us feel uncomfortable about the dispensation we currently have to work “as normal” (subject to obvious Covid provisions) .
That would have my full support
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If Mr Steel waits, he will possibly pick up a bargain.
The government should let the housing market grow organically. Without stamp duty holidays, help to buy etc.
If Developers want to sell their stock they should then price according to what people can afford.
This way the market does not get distorted.
It’s a bit like like when the goverment introduced minimum wage in 1997 – it seems most peoples salaries have been at the minimum wage for years!!! As the employers just says “its above the minimum wage”
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If the ship has sailed you better get on the next one, don’t try and swim after it.
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The government should put more focus on first time buyers not second and as for stamp duty, it has served its purpose please move on.
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