Ten things that will shape the property market in 2021

The residential property market has held up well in 2020, no doubt supported by the government’s stamp duty holiday introduced as part of wider Covid-19 measures. But what, asks Henry Lowe, partner at Mercer & Hole, will shape the property market in 2021?

1: Stamp duty holiday ends

With a view to buoying the UK housing market, we are currently enjoying a stamp duty ‘holiday’, introduced from 8 July 2020, with the threshold at which Stamp Duty Land Tax (SDLT) normally applies having been temporarily lifted from £125,000 to £500,000.

This potentially provides buyers who complete their purchase before 1 April 2021 with a SDLT saving of up to £15,000. This SDLT reduction is due to expire on 1 April 2021, at which point the tax rates will revert to normal. We understand there are currently no plans to offer an extension to the holiday.

2: Non-UK residents stamp duty

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