Published by: Mathilda Edel Boyle
The phrase “every action has an equal & opposite reaction” could not be more relevant to the truth when it comes to Stamp Duty Tax and its affect on the UK Housing Market. Whenever a change has been made to SDT, seen in 1988, 2017 & 2020, property values have altered.
In a bid to boost the market, Chancellor Rishi Sunak imposed a Stamp Duty Holiday between July 8th 2020 & March 31st 2021. This extended the 0% tax threshold, for home buyers, from £125,000 to £500,000.
It has been argued by many that this increased bracket should be extended to support the downturn in the economy from the ongoing pandemic. To protect the property market from further chaos, the chancellor has been warned that the scheme should be “modified … to prevent serious problems as hundreds rush to complete”  before the Holiday deadline.
As the second wave of the COVID-19 pandemic takes a hold of the majority of cities across England & Northern Ireland, the reluctance to purchase property has been seen to shake the, once stable, market. Despite this, buyers are seen to be taking the Stamp Duty Holiday as a propeller for property purchase, encouraging the argument of extension beyond March 31st.
The Stamp Duty Tax Holiday has only been imposed on properties described as a main home. Not inclusive or extended to secondary homes or additional properties, all of which include an additional 3% tax on top of any other rates. This has obviously reduced the amount of international purchase as it is less likely to be their primary residence. It appears that this may be the Governments intention as a proposed 2% surcharge is set to be placed on overseas buyers in April 2021. International purchases are said to cause an inflation to the UK’s property economy, the reduction of which would make UK housing more affordable for residents.
 Nigel Lewis, The Negotiator