Stamp Duty Relief
09.09.2020
Pandemic disruption caused by COVID-19 has undoubtedly impacted the UK residential market and will, of course, take time to recover.
Nevertheless, with signs of increased demand just days after lockdown relaxation rules were introduced as well as the financial incentives set out by the government to stimulate and strengthen the economy – the future of UK housing is once again looking set for growth.
The impact of lockdown
The effects of lockdown have demonstrated to many people that living within a quality environment is more important than ever and that a dwelling should provide a range of different functions from home office working to socialising and outdoor garden space.
As a result, people have been feeling unsatisfied with their current homes and enquiries have increased significantly across the UK throughout the lockdown period. Indeed, property marketing website, Right Move, stated that over a quarter of people (28%) who were not planning a move before lockdown are now entering the market.
Adding to this increase, recent UK Government incentives have driven a significant rise in enquiries with Rightmove announcing that a mini housing market boom was gathering pace after the Stamp Duty Land Tax (SDLT) temporary reduced rates announcement.
So who benefits from SDLT temporary reduced rates?
If a buyer or investor purchases a residential property between 8 July 2020 to 31 March 2021, they will only start to pay SDLT on the amount they paid for the property above £500,000. These rates apply whether they are buying their first home or have owned property before. The rates of relief are set out in the table below:
| Property or lease premium or transfer value | SDLT rate |
| Up to £500,000 | Zero |
| The next £425,000 (the portion from £500,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 5% |
What does this mean for Parklands?
At Parklands, we’re ready to help our customers navigate through the sales process and to reap the benefits of the Stamp Duty temporary reduced rates. Below are a few examples of thd kind of savings you’d make if you were to buy one of our house types:
| House Type | Sale Price | Stamp Duty Saving |
| The Rase | £275,000 | £8,250 |
| The Glaven | £475,000 | £14,250 |
| The Waring | £385,000 | £11,550 |
| The Maun | £255,000 | £7,650 |
With 130 high quality homes and 25 modern and contemporary apartments, we have a wide range of options to suit your budget.
To find out more call our sales suite on 01522 561450.