The “nil rate” stamp duty band, which was temporarily increased to £500,000 in 2020, has halved to £250,000 as of Thursday, July 1.
As of October 1, it will revert to its normal threshold of £125,000.
Six in 10 (61 per cent) home movers said their decision to move had been influenced by the stamp duty holiday, according to a survey by Churchill Home Insurance.
On average, UK house prices have increased by £10,246 in the past 12 months, property website Zoopla said.
Intense market activity encouraged by the stamp duty break has accelerated house price growth, pushing 1.8 million properties into a higher stamp duty bracket, while the average time it takes to sell a property has nearly halved, to 22 days in May 2021, compared with 42 days in May 2019, the report said.
It said this shows buyers are continuing to make moves regardless of the stamp duty deadline – with the majority of sales agreed in May unlikely to benefit from the maximum stamp duty holiday discount.
Grainne Gilmore, head of research at Zoopla, said: “Demand may ease further as the reopening of the economy allows people to do more and travel more widely, but, at the same time, the confirmation of working practices for office-based workers will lead to more home-buyers being able to push ahead with a move.
“The total stock of homes for sale continues to run well below historical norms, and this will underpin pricing. At the same time, it may also constrain potential activity, especially for buyers looking for family houses.
“Even so, we forecast that this year will be one of the busiest for the housing market since the global financial crisis – with 1.5 million residential transactions.”
Take a look at five excellent properties on the market in Leeds for under the new, lower stamp duty threshold...