Temporary reductions in SDLT, which are set to run until 31 March 2025, were announced in the Autumn Statement: Stamp Duty Land Tax — temporary increase to thresholds – GOV.UK (www.gov.uk)
By Phil Kinzett-Evans
The Treasury’s view is:
“Reductions in SDLT rates, or increases in the thresholds, support house purchases and so property transactions and house prices. Increased property transactions add to residential investment and spending on durable goods.
As this measure is temporary it will incentivise people to bring forward transactions to benefit from the increases in the thresholds. This will lead to an increase in transactions before the end of the scheme and a commensurate reduction in transactions once the measure expires”.
Phil stated “One could argue that it is simply delaying an inevitable crisis which is building up in the housing market, with more and more first time buyers frozen out of the market as prices increase. Whilst this may give a short-term boost to the few who are ready to buy and have been biding their time, it is still a far cry from enabling those who have to save extremely large deposits before they can even contemplate a purchase. Tenants will be suffering the impact of rising rental costs, as mortgage rates increase for landlords and those costs are passed down, leaving little or no free cash available to save.”
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