The impact of Sunak's 2021 budget on the property market

Elaine Penhaul, owner and director of home staging company Lemon and Lime Interiors, said: “Following the fluctuation of the property market during the UK’s first national lockdown, the industry was given a lifeline by the government through the introduction of a stamp duty holiday, which relieved house buyers of stamp duty costs when purchasing properties under £500,000.

“Initially due to end on 31 March 2021, Rishi Sunak has now announced that the deadline has been pushed back to 30 June due to the extension of national lockdown, with the nil-rate then lowered to £250,000 until end of September.

“This will be met with mixed feelings by professionals across the industry. While many will be relieved that this lifeline has been extended and will continue to support the prosperity of the market, there will also be concerns about how the race to get transactions completed before the end of the holiday will push property prices artificially and unsustainably high.

“Although it seems fair that anyone who has already agreed a sale in the period where the stamp duty holiday initially applied should be allowed to finalise their purchase without these costs, the added pressure to complete could potentially disrupt the market that has now settled since its standstill during the first national lockdown.

“Understandably, measures must be taken to soften the impact of economic decline and, with unemployment and furlough having a detrimental impact on the provision of mortgage offers, the government wants to encourage people to continue to purchase properties and keep the market afloat.

“However, as this added incentive encourages buyers to push for completion before the new deadline, the risk of instability that will come with this added interest is something that must also be considered and navigated accordingly.”