Stamp Duty cut is welcomed as bold move
Dudley Building Society’s chief executive believes that the announcement of a cut in Stamp Duty can only have a positive impact on the housing market.
Jeremy Wood said: “While there has been talk that the Chancellor’s leaked proposals for a temporary cut in Stamp Duty would only benefit a small part of the market, I don’t agree. The actual announcement will help stimulate the market, assist buyers of all types and go some way to cutting the costs of downsizing for many older homeowners who, up to now, have been put off freeing up their property for a new generation because of the stamp duty levy on purchasing a new, smaller home.
"The effect will also cause a ripple effect and benefit ancillary services, such as property conversion, renovations and DIY as well as help estate agents retain and recruit staff. On top of that, demand for funding can only help mortgage brokers and lenders regain some of the lost ground caused by Covid-19.”
Mr Wood described it as "a bold move" and added: "While it denies much needed tax revenue to the Treasury in the short term, the overall stimulus should more than offset any immediate loss.”
Thursfields Solicitors, which has offices in Halesowen, Sedgley and Kidderminster, has also welcomed the Chancellor’s decision to cut Stamp Duty on homes under £500,000.
Managing director Nick O’Hara explained: “This is the right move at the right time to get the property market moving again.
“There was a degree of pent up demand, delayed house moves and an initial surge of interest after lockdown was eased, but it was in danger of stalling.
“The Chancellor’s decision to introduce a temporary increase to the Nil Rate Band of residential Stamp Duty from £125,000 to £500,000 until 31 March 2021 is a welcome shot in the arm for the housing market.”
Mr Sunak told MPs that in England and Northern Ireland this meant that nearly nine out of 10 people looking to move would pay no Stamp Duty at all, his intention being to drive growth and support jobs across the housebuilding and property sectors.
Mr O’Hara added: “Although many of our staff are still working remotely, this has not impacted on our ability to carry out conveyancing and we have seen a peak since the lockdown rules were relaxed. We look forward to seeing many more clients now feeling confident enough to move or sell their home.”
