Rishi Sunak takes a bowMake Text Bigger
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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