After a year of being pushed to take advantage of the original stamp duty holiday, we've now reached the end.
During the holiday, stamp duty was set at 0%, allowing buyers to save up to £2,500 (until September 30, 2021). Now, the nil rate band has reverted to £125,000.
The tax break was significantly less than the previous holiday, when homeowners could save up to £15,000.
According to some brokers, like Finbri, business is still active. While the market may be quieter now, many clients are still finding properties they want to purchase.
"I'm not sure anything is going to change, but I am confident in the team that has been working hard to get us out of the red quickly." "There are things to be optimistic about," says Lloyd's executive director Don Pavletin.
"We've discovered that many clients who couldn't afford to buy or move quickly enough have accepted offers on properties.
"There do appear to be a lot of people who walked away from the property market and are now ready to begin house hunting."
According to Nationwide's house price index, annual price appreciation in July was in the double digits for the fifth month in a row, but slowed to 10.5% from the previous high of 13.4 percent in June.
For first-time buyers, the current stamp duty holiday is of very little significance. Up to £300,000 in stamp duty is nil for purchasers who acquire their first property for less than £500,000. On amounts between £300,001 and £500 million, 5% is charged.
According to Bennison Brown's managing director, first-time buyer transactions are still strong, and he expects them to outpace home buyers again by the second half of the year.
Meanwhile, the number of home movers, buy-to-let investors, and second homes has decreased, especially at the higher end of the market.
The impact of other costs
The £250,000 nil rate band is a red herring, according to buy-to-let expert Angus Stewart.
"For most landlords, the stamp duty holiday ending in September at a maximum value of £250,000 is a red herring," say experts.
"The boost in home values, some of which is due to the tax cut, has somewhat cancelled out any gains."
According to the firm's chief economist, Robert Gardner, "the stamp duty holiday was dwarfed" by recent house price rises.
"For example, the typical UK property's price climbed by around £24,500 during the six-month period from July 2020 to June 2021, whereas a home mover in England saved approximately £1,900 in stamp duty (in England)," says Gardner.
"The rent rise for a £500,000 house that mirrored the typical property's growth was £57,000 over the same time period versus a stamp duty savings of £15,000."