Press release

3 Mar 2021 London, GB

Stamp duty holiday extension and business rates: Unremarkable Budget keeps property sector waiting for the changes it wants, says EY

The stamp duty holiday extension and the new mortgage guarantee scheme are good news items for the housing market as they are measures designed to stimulate demand. The monetary benefits will primarily flow to sellers rather than buyers as the increase in demand will inevitably push prices up.

Press contact
Russell Gardner

EY UK&I Real Estate, Hospitality and Construction Sector Leader

Head of Real Estate, Hospitality and Construction. More than 20 years' of experience advising on UK and European property transactions. Helping clients tackle challenges today for tomorrow's growth.

Russell Gardner, EY UK & Ireland Head of Real Estate, comments on the extension to the stamp duty and business rates holidays:

“The stamp duty holiday extension and the new mortgage guarantee scheme are good news items for the housing market as they are measures designed to stimulate demand. The monetary benefits will primarily flow to sellers rather than buyers as the increase in demand will inevitably push prices up.

“Otherwise, the tax changes announced in this Budget have been fairly unremarkable for the property sector, with a short-term emphasis evident in the steps aimed at helping tenants through what we hope to be the last phase of the pandemic.

“With a number of key tax consultations deferred until 23 March and the final report on business rates deferred to the autumn, the Chancellor’s vision for the property sector is still to be revealed. With the economic recovery in sight, we need bold measures to create the right conditions for investment in our town and city centres. Meaningful tax reform and modernisation will need to play a key role but, for now, the property sector will have to keep waiting for the changes it wants to see.”

Ends

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