The End of Stamp Duty Holiday – What could this mean for Landlords?
As we all know, the aftermath of a worldwide pandemic left complications in many areas of society – the property market included. In order to counteract some of the feared financial implications inflicted by Covid, in July 2020 the threshold for not paying stamp duty tax was increased to house sales up to £500,000. Whilst indeed supporting the property world, this increase was also introduced to help those financially impacted regarding unexpected changes to employment and income. As a result, property sales boomed.
As of the 1st July 2021, the stamp duty holiday will now come to an end, and what is to follow are more changes to both property sales and the lettings market too. The threshold of stamp duty tax has halved, now standing at 0% for the first £250,000 for owner occupiers, and for second homeowners it is an additional 3%. While this date has been looming ever closer over the past year, the property market has remained consistently active, although, with the shifting stamp duty relief, this may all change.
Many renowned online letting sites, including Property Industry Eye[1], has voiced the repercussions of this sharp drop giving reference to potential buyers now pulling out of their sales, and highlighting a lack of eagerness since the removal of such an exaggerated policy. David Bentley, associated with Property Market[2], encourages potential buyers to refrain until the market has had the opportunity to normalise once more. As the world slowly attempts to adjust back to normality, the lack of desire to purchase simultaneously indicates beneficial prospects for buy to let Landlords.
As the demand to buy property is replaced with the need to rent, here at Parks Letting, we are receiving new instructions from Landlords every day. In other circumstances too, such as the sale of your property not levelling out as you wish, sales having not met the deadline, or buyers suddenly and unpredictably pulling out, Landlords can instead certainly expect elevated income from taking on a rental direction. Not to mention, our Landlords enjoy the benefits of financial security during such an unusual period of time.
If you have any questions, queries or want more information of what we can do for you here at Parks, our friendly and professional team are waiting to take your call. You can reach us on 01273 202089 between the hours of 9-5.30 Monday to Friday, and 9-1.30 on Saturdays. Alternatively, we can be reached via email; to communicate with our letting director Antony please use antony.rummins@parksletting.com. We look forward to hearing from you soon.
[1] Stamp duty extension is a ‘big win’ for agents and buyers – industry reaction – Property Industry Eye
[2] Stamp duty holiday end date – when is it and what’s best time to buy a house? – Birmingham Live (birminghammail.co.uk)
