Back in July 2020 Rishi Sunak announced that the property price at which stamp duty begins would be temporarily increased to £500,000, for sales in England and Northern Ireland until March 2021. This has now been further extended to 30th June
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The value of investments, and the income from them, can go down as well as up, so you may get back less than you invest.
Between July and September 2021 the allowance will step down to £250,000 and then after this will return back to its original level of £125,000.
The move was designed to support the housing market during the COVID-19 disruption period, with buyers saving £15,000 if purchasing a property over £500,000.
The 3% additional stamp-duty rate, which applies to purchasers who already own at least one property (e.g. Buy-to-Let investors), is not affected by these changes and will still apply.
The chancellor announced further measures designed to support first time buyers with their “mortgage guarantee” scheme. Starting in April 2021, the government will guarantee lenders who sell mortgages at 95% loan-to-value, requiring only a 5% deposit from buyers, up to a maximum property value of £600,000. Lloyds, NatWest, Santander, Barclays and HSBC have announced they will be offering the 95% loans as part of the scheme.
Our Buy-to-let investment calculator has been updated to reflect the temporary stamp duty relief – try it now to estimate the profitability of a buy-to-let, along with some other metrics you might find useful.