Wednesday 8 July 2020 10:02 am

Stamp duty holiday 'could be implemented immediately'

The chancellor is expected to announce this afternoon that a stamp duty holiday will come into force immediately, rather than delaying the change until autumn. 

Rishi Sunak is expected to raise the threshold for paying stamp duty from £125,000 to £500,000 as he outlines measures to help the UK economy recover from the coronavirus crisis. 

Read more: Stamp duty holiday: What does it mean for the UK housing market?

It was reported that any changes to stamp duty may be delayed until the autumn. However, the Telegraph reported that the changes could be brought in immediately.

Property experts anticipate that the announcement could boost housing activity, although they warned that changes must be implemented straight away.

Analysts said changes should be brought forward from autumn to discourage potential buyers from delaying purchases.

“Suggestions the move could be signalled on Wednesday but not enacted until the Autumn Budget are difficult to square off,” AJ Bell senior analyst Tom Selby said. 

“Any move in this direction would likely dampen rather than stimulate demand in the short-term, as buyers would inevitably delay property purchases until the stamp duty cut actually kicked in.” 

Iain McKenzie, chief executive of The Guild of Property Professionals, said: “The housing market is currently showing good signs of activity, any indecisive action from the Government could stem the flow buyers in the market and have people sitting on the side-lines waiting for a discount.”

Read more: Coronavirus: Knight Frank and Rightmove call for stamp duty holiday to reignite market

Rightmove property expert Miles Shipside added: “If it is included in the summer update it needs to be made clear what it would mean for people home hunting or currently going through the conveyancing process right now, as an announcement now that doesn’t come into play until the autumn will only lead to people delaying their plans.”

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