When does the stamp duty holiday end and what will happen to house prices after?
Get the latest news from all parts of our city - sign up for our free email newsletter Invalid Email Something went wrong, please try again later. Subscribe Thank you for subscribing We have more newsletters Show me See our privacy notice  House prices have been surging for more than a year now after Chancellor Rishi Sunak stepped in to boost the property market after fears the sector would grind to a standstill last summer. The stamp duty holiday - as it has been termed - has been good for some buyers but has created a backlog in sales now the deadline approaches and solicitors rush to get agreed deals over the line before June 30. Many have speculated as to what will happen after the end of June. Read more: The reasons this Leeds suburb has housebuyers fighting to move there  Heres everything you need to know about when the deadline ends and for whom  as well as what is expected to happen to those crucial house prices when it passes. The stamp duty holiday was brought in in England and Northern Ireland by Chancellor Rishi Sunak in July 2020 to kickstart the economy and get people moving again despite the pandemic and the difficulty in moving house with restrictions in place. As it stands buyers will pay no stamp duty on the first 500,000 of their house or apartment purchase price, provided the purchase completes before the end of June. The threshold at which stamp duty kicks in is falling to 250,000 from July 1 in England and Northern Ireland. In September it will return to the pre-pandemic level of 125,000  and first-time buyers can purchase homes costing up to 300,000 without have to pay stamp duty from 1 July. Analysts are divided as to what will happen to house prices in the UK after the holiday ends, but youd normally expect it to have a deflationary effect given that buyers will have to pay more in tax to buy the same properties. However, there may still be a lot of pent up demand given the fact that the Government has been supporting the wider economy for more than a year and a lot of people have more cash in their pocket if they were lucky enough not to be hit by job cuts. Iain Swatton, head of intermediaries at the mortgage firm Dashly, told The Guardian: The property market is as strong as ever and a more sensible prediction is that after the stamp duty deadline has passed, well likely see more of a soft landing.  He went on to add: We may also see more of a culture of improve rather than move. As the economy recovers, those who were able to save during the pandemic may consider finally getting round to that loft extension or revamping the family bathroom.