Bounce Back July…And What Exactly Is A Stamp Duty Holiday?

I was reading on BBC News last week that the Nationwide reported a climb of 1.7% in house prices in July, compared to a 1.5% fall the previous month.
This indicates a rapid rise in market activity as a bottle neck of demand and a re-appraisal of personal circumstances during lockdown has brought moving house back into focus for many. It also seems that social distancing hasn’t been as much of a ‘put off’ to moving as had been feared.
Another major factor boosting the housing market is the stamp duty holiday announced earlier last month. Stamp duty is a tax paid by people buying a property and varies across the UK. In England, house buyers will see the stamp duty threshold lifted to £500,000 meaning that most purchasers of a property costing less than this will pay no stamp duty at all. The new stamp duty holiday replaces the first-time buyer discount and landlords and second home buyers will still have to pay the extra 3% they were charged before the change in the rules.
So, with the average bill for stamp duty falling by £4,500, it is being suggested that nearly 9 out of 10 people will pay no stamp duty at all during the ‘holiday’ which is due to end next spring.
With this news, however, sounds the ever-present warning note – the economy is fragile and there is financial uncertainty for us all. The news everyday tells us that there may well be a resurgence of coronavirus this winter, but let’s be hopeful that out of small steps now we will see sustained growth going forward.