You will recall Chancellor Rishi Sunak Introduced in July 2020, the Stamp Duty Land Tax (SDLT) Holiday that significantly reduce the costs of buying a home and has been supporting the housing market since, and has contributed to the record rise in house prices.

However, the higher SDLT thresholds will change from 1 July increasing the cost of buying a home.

From the beginning of July, the SDLT rules will change so that the threshold at which tax is paid falls from £500,000 to £250,000 (£300,000 for first time buyers, and 5% on the next £500,000).

This new rate of SDLT will remain in place until 1 October 2021, when it will fall again to just £125,000.

The new rates will be as follows:

Property or lease premium or transfer value from 1 July	SDLT rate
Up to £250,000	0 per cent
The next £675,000 (the portion from £250,001 to £925,000)	5 per cent
The next £575,000 (the portion from £925,001 to £1.5 million)	10 per cent
The remaining amount (the portion above £1.5 million)	12 per cent
Property or lease premium or transfer value from 1 October	SDLT rate
Up to £125,000	0 per cent
The next £125,000 (the portion from £125,001 to £250,000)	2 per cent
The next £675,000 (the portion from £250,001 to £925,000)	5 per cent
The next £575,000 (the portion from £925,001 to £1.5 million)	10 per cent
The remaining amount (the portion above £1.5 million)	12 per cent

Remember, there is a 3% additional home surcharge on second homes purchased.

It will be interesting to see if this dampens demand and will see house prices level or even fall into 2021.