London’s recovery received a welcome boost on 8th July 2020 when Chancellor of the Exchequer Rishi Sunak announced a temporary holiday on stamp duty for all residential property purchasers including landlords. The new rules could deliver savings of as much as £15,000.
With pubs and restaurants already back to business, and pools, outdoor theatres and spas soon to follow, London is making major steps in its recovery. Rules have also changed for the property sector, with agents and renters now able to conduct viewings once again.
Post lockdown, the capital has seen a slight fall in property prices. Leading agent Knight Frank predicts that prime London house prices will drop 5% this year, meaning that there are good deals to be done. Coupled with the nine-month stamp duty holiday, now is a great time to invest in London.
How much could you save?
Anyone completing on a main residence costing up to £500,000 between 8 July and 31 March 2021 will not pay any stamp duty, and more expensive properties will only be taxed on their value above that amount. Landlords and second home buyers are also eligible for the tax cut but will still have to pay the extra 3% of stamp duty they were charged under the previous rules.