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Stamp duty holiday – is it enough?

Simon Ainsworth, Head of Private Client at regional law firm Napthens, said: “We are extremely busy completing many transactions instigated pre-lockdown, alongside dealing with an influx of new work since the property market was effectively released midway through May.  The stamp duty land tax holiday will only add further stimulus to that.

“This helps those buying at up to £0.5m who will now pay no stamp duty at all. Even those buying second homes or investment properties will see some benefit although the three per cent extra duty due will still apply.

“As part of the overall initiative, we would urge lenders to adopt a more relaxed criteria going forward.  We do not want to see the cavalier lending of pre-2008 but many lenders are refusing to lend more than 85 per cent of the purchase price and this often leaves first time buyers struggling to raise the deposit. They won’t benefit from the stamp duty holiday if they cannot afford to buy in the first place

“If lenders can help and the general economy also picks up then we would hope to see a sustained level of activity in the market beyond next March when this runs out.”