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Stamp duty holiday 33 to use savings on renovations to new homes

Stamp duty holiday 33 to use savings on renovations to new homes

Every third homeowner prefers to use stamp duty holiday savings to make home improvements to their new London property. The report has been issued by the Checkatrade.

Every third homeowner prefers to use stamp duty holiday savings to make home improvements to their new London property. The report has been issued by the Checkatrade.

The Chancellor of the Exchequer, Rishi Sunak, announced the stamp duty holiday in July. It exempts the first £500,000 of all property sales from the revenue. The move will incentivise aspiring homeowners to climb on the property industry.

The holiday is vital for those contemplating renovating a house. It will also benefit those who are in the middle of buying or considering a move in the near future. And also those who can reinvest their savings into their project.

Altogether, 33 percent plan to direct the savings into their new house by making home renovation or refurbishment will lead to an average spend of £4743 to each household.

The estimate has been made by Checkatrade, whose CEO Mike Fairman said: “Savvy Brits are visibly planning to utilize the most of the stamp duty holiday with many buyers already considering to reinvest the money saved back into their properties.”

He said that it is a piece of great news for the would-be new homeowners and tradesmen alike.

Where Will Stamp Duty Savings Be Reinvested?

The findings by Checkatrade are based on a survey of around 2000 respondents. They also identify which rooms the likely renovators are considering to reinvest the savings on.

The top 10 renovations of preference were:

1.     New kitchen – 40%

2.     Renovated bathroom – 30%

3.     Living room – 27%

4.     Garden area – 24%

5.     Patio / outdoor entertaining space – 18%

6.     Dining area – 12%

7.     Loft conversion – 12%

8.     Home entertainment/games room – 12%

9.     Indoor workspace – 12%

10. Swimming pool/ Outdoor workspace – 11%

Those people who are seriously considering moving home are predicted to save £38.1 billion during the stamp duty holiday. Around 14 percent corroborated that the introduction of the stamp duty holiday means they will be considering to move to a new house. Or, they have already made a purchase.

Furthermore, 59 percent said they would be more likely to purchase a ‘fixer-upper’, as they’d have extra money available to put their own stamp on a property.

The stamp duty holiday is scheduled to last until 31st March. The Chancellor of Exchequer is likely to give an update on housing activity in the UK in October. It is when the Autumn Budget will be presented in the House of Commons.