Sunak’s stamp duty holiday extension has merely inflamed the housing market
by Nils Pratley from on (#5HE6N)
Throwing money at an already heated market looks nonsensical and could lose the Treasury 2bn
Surprise, surprise. Presented, or so they thought, with an end-March deadline to save a few thousand pounds on stamp duty, buyers rushed to complete their house purchases. Mortgage lending in the month reached a new record.
It requires no imagination to see what will happen in June, the extended deadline for the 500,000 zero band on stamp duty in England and Northern Ireland - an extension announced very late in the day by the chancellor, Rishi Sunak, in his March budget. There will be a repeat. Then the drama will be replayed in a miniature form in September as buyers try to get on the right side of the taper from 250,000 to 125,000.
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