The expanded Stamp Duty relief will support conveyancers who have lost business as a result of Covid-19, the Law Society for England and Wales has said.
The report comes after the Government announced a temporary holiday on stamp duty on the first £500,000 (previously £125,000) of all property sales in England and Northern Ireland.
The changes, which could save homebuyers as much as £15,000, will last until 31 March 2021 to stimulate market activity.
However, homebuyers purchasing second properties are still required to pay the Stamp Duty surcharge of three per cent, while any value above the £500,000 threshold will be taxed as per the current tapering rules: five per cent on any value between £500,001 to £925,000 and 10 per cent on any value between £925,001 and £1.5 million.
Additionally, homeowners who completed on a property sale before 08 July 2020 are not eligible to receive the relief.
Commenting on the changes, Law Society President Simon Davis said: “This is a time of upheaval in the lives of many who need to move home for various economic, social and personal reasons. A temporary reduction in residential property transaction costs to support such people and to bring forward demand makes sense.”
He added: “It will also be welcome news for solicitors whose volume of work has fallen.”
According to the latest statistics, property transactions are around 20 per cent lower than they were at this point last year, representing around £27 billion in lost deals. House prices, meanwhile, saw negative annual growth for the first time since 2012.
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