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Majority of brokers want stamp duty holiday extension

Two thirds of brokers would support extending the current stamp duty and land tax holiday beyond its 30 June deadline, according to research from mortgage tech platform Twenty7Tec.

In a survey of its 14,000 broker clients, 49% replied they would ‘absolutely’ support an extension to the holiday with 9% answering ‘probably’.

 

In contrast, 14% responded they would ‘definitely not’ support an extension with 15% preferring to answer, ‘probably not’. The remaining 12% were neutral.

 

To boost the housing market, Chancellor Rishi Sunak lifted the threshold for stamp duty liability to £500,000 on 8 July 2020.

 

This was due to end in March but then extended to 30 June 2021. After that date, the nil-rate threshold drops to £250,000 and first-time buyer relief resumes.

 

First-time buyers do not have to pay any stamp duty on the first £300,000 of their property purchase, paying only 5% of the amount above that but under £500,000.

 

This stamp duty holiday is due to end entirely on 1 October 2021 when the nil rate band threshold will revert to £125,000.

 

Those supporting a further extension to the 30 June deadline gave explanations such as to better relieve pressure on solicitors and to keep the market buoyant.

 

Conversely, those who responded they would not want an extension explained they wanted a normal buying situation to return, warning the short-term demand and house price inflation will inevitably drop once it’s over.

 

“Beyond the headline statistics, there’s a real split in brokers’ opinion about whether to extend and why,” said Niki Cooke, head of intermediaries at Twenty7Tec. “Was the tax relief programme a success? Well, it definitely kept the market moving in what were challenging circumstances.

 

“But brokers are now asking the biggest of questions: ‘Should we have stamp duty tax at all for average priced houses?’ and ‘How do we make sure that we treat people fairly who would otherwise miss the June 30 deadline?’ Those are the challenges for the Chancellor over coming days.”

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