Rishi Sunak takes a bow

by Nick Thompson

8:28 AM, 23rd September 2020
About a month ago

Rishi Sunak takes a bow

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Rishi Sunak takes a bow

In a Hm Treasury press release Rishi Sunak is taking credit for house sales rising 15.6% in August following the introduction of the stamp duty holiday. However, Rishi does not point out that HMRC annual sales figures are down 23.9% and a great deal of the August increase can be account for by pent-up demand releasing since lockdown.

“After a 14.5% rise in July, residential property transactions in August rose a further 15.6% as more people decided to buy a new home or move house. The increase in transactions came after the Chancellor announced a stamp duty holiday at the start of July that will last until March next year.

The move has helped to protect nearly 750,000 jobs, benefiting businesses across the housing supply chain and beyond, with the Bank of England estimating that households who move home are much more likely to purchase a range of durable goods, such as furniture, carpets or major appliances.

It is expected that among others housebuilders, estate agents, tradespeople, DIY stores, removal and cleaning firms could all benefit from the increased activity.

Chancellor Rishi Sunak said: “Every home sold means more jobs protected helping us to deliver on our Plan for Jobs, but this isn’t just about the housing market. Owners doing up their homes to sell and buyers reinvesting stamp duty savings to make their new house feel like a home are also firing up local businesses, supporting, creating and protecting jobs across the country.”

As part of its Plan for Jobs, the government introduced a temporary stamp duty holiday for residential properties worth up to £500,000 effective from 8 July 2020 until 31 March 2021.

The holiday means nine out of ten people getting on or moving up the property ladder will pay no SDLT at all. This measure delivers an average saving of £4,500 in SDLT.

The government wants people to feel confident to move, to buy, to sell, to renovate, and to improve their homes, driving growth and supporting jobs.

Figures from Building Societies Association show that there has been a marked uplift in the number of people who say that now is a good time to buy a property – 37% in September compared to 25% in June, whilst figures from Checkatrade show that:

  • more than one in ten (11%) of Brits are hoping to have bought a new home by the end of March 2021
  • 33% of those hoping to move plan to spend the ‘extra’ cash on home improvements and renovations.”

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Comments

Whiteskifreak Surrey

11:49 AM, 23rd September 2020
About a month ago

There is a well known fact that lowering taxes increase the collection amount... Sadly Sunak is unable to make that link and will be hugely raising taxes from April 2020. That will stall the housing market IMHO, and will make everyone poorer, including HMRC

Richard Adams

12:24 PM, 24th September 2020
About a month ago

What "hugely raised taxes" are you referring to that you know will DEFINITELY happen?

terry sullivan

13:13 PM, 24th September 2020
About a month ago

all taxes will rise--no other way to cover interest costs

Whiteskifreak Surrey

13:18 PM, 24th September 2020
About a month ago

Reply to the comment left by Richard Adams at 24/09/2020 - 12:24
I have no time at the moment to look at that article I had read, however the only definite thing in life is that we will all die. Nothing else is definite anymore, in case you did not notice.
BTW: how do you think this - almost socialist - government is going to pay for Covid spending bonanza? Landlords will be first to be taxed

Richard Adams

13:23 PM, 24th September 2020
About a month ago

Reply to the comment left by terry sullivan at 24/09/2020 - 13:13
I'm just puzzled by the initial post saying HUGE tax rises will be introd. in April 2020 - five months ago ie retrospective seemingly. Seems everyone is being seduced by the current trend for all news to be doom and gloom, glass half empty rather than half full etc regarding everything topical today, which is so dispiriting. Maybe taxes will rise like you say because they have to although there are contrary opinions in the news in small print only mind so as not to contradict the doom and gloom outlook so loved by the media. Anyway let's wait and see. Might not be too bad?

Richard Adams

13:29 PM, 24th September 2020
About a month ago

Reply to the comment left by Whiteskifreak Surrey at 24/09/2020 - 13:18
I had sort of noticed that eventually I shall die but thanks for reminding me. So you read an article from which you have formed your opinion? Like I just posted replying to Terry, let's wait and see.


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