Has the stamp duty holiday been a help or a hindrance for investors?

The Government’s Stamp Duty Holiday incentive that was introduced in July 2020 has been a key player in the mini boom we have seen in the UK property market recently and it has helped thousands of home movers take a step onto the property ladder with the great potential savings to be had. However, the question on our minds here at Chelton Brown is, has this been the case for investors across the country? In this article we will breakdown some of the pros and cons investors have faced as a result of the incentive.

One big positive that investors have benefited from is an increased amount of people moving homes. This has obviously meant that there are higher amounts of stock coming onto the market, meaning more choice for investors and a better chance to find that perfect investment property. As well as this, the property market has also seen an increase in house prices and this has resulted in strong capital appreciation for many investors on their properties.

In opposition to this, there are some negatives that investors have seen as a result of the stamp duty holiday. The big negative is the fact that the UK property has seen a big surge of new buyers who were not looking to move previously. This has caused a higher level of competition for investors who would sometimes be able to get a ‘deal’ and has meant that the amount of those ‘deals’ have dramatically reduced compared to late 2019 and early 2020.

To conclude, we here at Chelton Brown believe that the Stamp Duty holiday has been a positive for investors and for the property market as a whole! It has kept a key element of the UK economy strong and has allowed a high number of people to move into their dream home. The question on everybody’s minds now is, will the stamp duty holiday be extended on the third of March 2021?