Recent reports have indicated that the Chancellor, Rishi Sunak, is considering a six-week extension of the stamp duty holiday.
The property market has experienced a significant increase in transactions in recent months, with buyers rushing to beat the 31 March deadline to take advantage of the stamp duty relief.
The minimum threshold for paying stamp duty has been temporarily increased from £125,000 to £500,000, meaning that those purchasing property can save thousands of pounds on their transaction.
A longer extension of up to six months has reportedly been discussed, but the Government is more likely to extend the holiday until May, with concerns being raised over the cost of extending it any further.
The news will be welcomed by those who are currently trying to beat the 31 March deadline, with a reprieve of an additional six weeks allowing more time to ensure that their transaction is completed in time to qualify for the stamp duty holiday.
Mortgage applications have increased significantly in recent months, as have housing transactions.
The latest House Price Index (HPI) found that house prices increased by 8.5 per cent in the year to December 2020, with average house prices rising to a record high of £252,000.
A recent study of different price bands for property purchases has shown a sharper growth in activity higher price bands, with buyers set to make more significant stamp duty savings on transactions, with sales doubling in the £400,000 – £500,000 price band.
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