In addition to other measures aimed at supporting the UK’s housing market, Rishi Sunak has announced that he is to extend the existing Stamp Duty Holiday until the end of June 2021. Stamp duty will then be phased back in again over the following months until 30 September 2021, although some changes will then remain in place.
In a response to the government’s actions in reaction to Covid, the Treasury had introduced a moratorium on stamp duty chargeable on all property up to £500,000. This extension has been extended to allow for a glut in transactions to be cleared, before phasing in stamp duty again later in the year.
Stamp Duty Rates were previously as follows;
Up to £125,000: 0%
On the portion from £125,001 to £250,000: 2%
On the portion from £250,001 to £925,000: 5%
On the portion from £925,000 to £1.5m: 10%
Above £1.5m: 12%
The savings available to those buying properties with a value less than £500,000 are, therefore, significant.
The Holiday Rates are as follows;
Up to £500,000: 0%
On the portion from £500,001 to £925,000: 5%
On the portion from £925,001 to £1.5m: 10%
Above £1.5m: 12%
The tax-free threshold announced in the recent Budget will be cut from £500,000 to £250,000 on housing sales that complete between 1 July until 30 September to allow some phasing back to normal and the threshold for the nil rate band will then fall back to its usual level of £125,000 on 1 October.
First-time buyers will still benefit from existing exemptions and second home buyers are still subject to the 3% slab rate in addition to the above.
A 2% stamp duty levy will also be imposed on non-UK residents who buy property in England and Northern Ireland from April 2021.
Remember, stamp duty becomes payable upon completion, so the holiday rates set out above will likely only benefit those with transactions already underway, although the phasing relief is still significant.
Recent posts
Best UK Mortgage Rates this Week
Yesterday
Here are the lowest fixed mortgage rates of the week, available to first-time buyers, home movers, buy-to-let, and those remortgaging.
Call us for more information: 01628 507477 or email: team@mortgagerequired.com.
Nationwide is the first lender to allow mortgage deeds to be signed electronically and without the need for a witness.
‘My First Mortgage’ from major high-street lender Santander is specifically for those wanting to buy their first property. It allows first-time buyers to purchase 98% of the property’s value. However, certain criteria must be met to be eligible.
Maidenhead, Berkshire – 26th January 2026 – Dedicated independent mortgage experts, Mortgage Required, are delighted to have acquired fellow experienced brokerage, Y-Not Finance.
The acquisition connects two well-respected brokerages, both with a wealth of experience and shared values, to continue providing the best advice on all aspects of the mortgage market.
As part of the UK government’s plans to change the leasehold system to help families struggling with unaffordable ground rent costs.
The Prime Minister announced this morning (27 January) that ground rents will be capped at £250 per year, reverting to a peppercorn rate after 40 years.
Additional borrowing, also known as a further advance, is when you borrow more money on your existing mortgage for a specific reason agreed with your lender.
Here are five of the most common reasons for additional borrowing.
UK Housing Market Round-Up: 2025
30 Dec 2025
Property search site Zoopla has estimated that the UK housing market will end 2025 with approximately 1.15 million completed sales – 4.5% more than the previous year.
Take a look at the 2025 summary of the UK housing market.
Buying in the New Year
29 Dec 2025
If buying your first property, or moving home, is on your to-do list this year, the new year can be a great time to take this big step. In this short blog, we look at what you need to consider as you plan and prepare for your home-buying journey.
More information
Trusted by
