Chancellor Rishi Sunak has confirmed that the Stamp Duty threshold will be increased to £500,000 immediately until March 31 next year.
He confirmed rumours of the Stamp Duty holiday during his summer economic update this afternoon.
The Government will temporarily increase the nil-rate band of residential Stamp Duty in England and Northern Ireland from £125,000 to £500,000.
This will apply from today until March 31 2021.
The Treasury said nearly nine out of ten people getting on or moving up the property ladder will pay no Stamp Duty at all.
According to Rightmove, there are more than 510,000 properties with asking prices under £500,000 on the portal, making up 81% of all residential stock for sale in England
The property website said 291,000 properties under £500,000 are currently available for sale, making up 78% of all properties listed in England.
Max Hodgson, Director at Maxwell Hodgson Estate Agents, welcomed the news, saying that following the understandable uncertainty brought about by lockdown this move will provide just the incentive many unsure buyers and sellers need. He suggested it would also help first time buyers with a low deposit as they could now boost it with the Stamp Duty savings.
He said: “Whilst the market has already been much busier than expected since we reopened after lockdown, cutting Stamp Duty on purchases up to £500,000 will be just what is needed to get the property market flying and will also aid related industries.
HMRC guidance shows buyers of a main residence will get a full exemption but those purchasing an additional property would still have to pay 3% on the first £500,000 of a purchase.