Homeowners who were hoping the government would announce measures to help the property market in its most recent Budget might be inclined to give up on their moving plans and consider a loft conversion in Telford instead.
This is because Chancellor Rishi Sunak failed to provide any further help to property buyers or sellers in the Spring Budget, announced last month (March 24th 2022).
His decision to focus on other agendas is likely to be due to the long break from Stamp Duty Land Tax (SDLT) the government introduced during the pandemic, which helped so many homebuyers get on, or move up, the property ladder.
Michael Bruce, founder of estate agent Boomin, told Property Reporter: “The stamp duty holiday introduced during the pandemic was probably the biggest bone the government has thrown homebuyers in recent times, so to expect another to come so soon after the final December deadline is certainly wishful thinking.”
The government provided relief on SDLT for residential homes bought between July 8th 2020 and September 30th 2021, meaning there was no tax to pay on homes worth up to £500,000 during this period.
In comparison, homebuyers would have normally had to spend £15,000 on tax for a property worth £500,000. Therefore, this helped keep the property market moving, as it became significantly more affordable to purchase a home than before.
However, those who missed out on this window will be disappointed to hear there is not going to be another opportunity to save so much money.
Instead of moving, property owners wanting more space will be more inclined to put their money towards extending their current residence and avoid having to pay a bigger mortgage in the long-run.