- England and Northern Ireland - The stamp duty land tax only came into effect if you paid for a property which cost more than £500k, and this tax relief ended on the 30th June.
It also meant for first-time buyers, you would have been able to save up to £15k, contributing to an incredible 80,000 transactions taking place on just the final week of the stamp duty deadline, causing the busiest housing market we had ever seen.
So where are we now?
Stamp Duty tax now applies to properties costing more than £250k (if you are not a first time buyer) or £300k if you are a first time buyer.
But here is the big difference, while before the Stamp Duty deadline in June you could have saved up to £15k, this figure is now around the £2.5k mark now, and £3k if you are a first time buyer. Just to remind you, the deadline to take advantage of this tax relief ends on the 30th September.
By October 1st, the stamp duty tax will normalise, meaning it will become payable on any property over £125k.
- Wales - Firstly, stamp duty is actually referred to as Land Transaction Tax. There is currently no 'stamp duty holiday' as the deadline passed on the 30th June 2021.
Land Transaction Tax now applies on any property over the valuation of £180k.
- Scotland - Probably the most thorough of all the countries in the UK, the Land & Buildings Transaction Tax (LBTT) starts at £250k, and this has been in effect since the original deadline set by the Chancellor Rishi Sunak on the 31st March 2021.
Land & Buildings Transaction Tax now starts at £145k, and is set at £175k for first-time buyers.
In the graph above, you can see a thick orange line. This is the state of the market in 2019. We are still above that thick orange line, so right now demand is still going stronger than ever and the property market is still on fire. It’s not as bad as it was back in April – July 2020. But the demand is still very high!
To predict what happens next, will solely depend on if 'supply' can eventually meet 'demand'. How many properties can we actually get to market? We are getting to a place where the property market will eventually start to dry up.
This was when demand was totaling 75% of supply. What we are seeing at the minute is out of every 100 properties, 95-98 of them are going to sell which is ridiculous.