Government urged to backdate stamp duty cut

The letter welcomes the immediate cut to Stamp Duty costs on the first £500,000 of a property that were announced on Wednesday July 8th, but raises concerns that the plans would come as a "bitter blow" for hundreds who had already finalised proceedings since the start of lockdown in March.

The campaign for change is spearheaded by law firm Simpson Millar.

Remaining in place until March 31st 2021, the higher stamp duty threshold means that 9 out of 10 people will pay no stamp duty at all, and that the average house buyer will save £4,500.

Sarah Ryan, head of private client and conveyancing at Simpson Millar, said that the decision to not backdate the scheme was most likely to affect new build buyers and those who had been on the cusp of completion at the start of the pandemic who have faced "months of stress and uncertainty".

She said: “We of course welcome the plans announced today to freeze the Stamp Duty costs on any property up to the value of £500,000 which will not only encourage potential buyers to move on and up the proverbial ladder, but will also help to retain jobs in the real estate sector.

“However, there is no denying that for some, in particular those individuals, couples and families who have managed to complete on the purchase of their home either during lockdown, or in the immediate aftermath, this will come as a bitter blow.

“This is most likely to affect those who have bought a new build property as many of those transactions could go ahead despite social distancing, as well as those who were all ready to finalise proceedings once the rules relaxed in May.

“We have now written to the Housing Secretary to call for the scheme to be made retrospective so that those individuals can also benefit from the cost savings.”