Stamp duty holiday to be extended by 9 weeks.
By the end of June, the stamp duty holiday is to be extended by 3 months.
It was originally rumoured that the stamp duty extension would only be for those already in the process of buying a house. It was also only meant to be a 6-week extension to help sales complete.
Mortgage lenders, however, said 6 weeks would not be long enough to stop sales from falling through.
It is likely that the new extension will only be for those already in the process of buying a house, or those who have received a mortgage offer by a specific date.
The extension is expected to be announced on March 3rd when Chancellor Rishi Sunak delivers his speech on budgets.
Rob Houghton, chief executive of Really Moving, argues the stamp duty holiday has played a vital part in keeping the housing market going throughout lockdown. But he also argues that the extension should only be available for those already under way in the conveyancing process.
This will give buyers who have been restricted by delays a new date to complete.
The stamp duty holiday has been extremely beneficial for second time buyers. However, it has caused dramatic price rises for first time buyers. This has in turn created more competition between buyers.
As a result, in the second half of 2020 the proportion of first-time buyers in the market dropped by a huge 12% compared to the first half of the year.