Chancellor Rishi Sunak has confirmed that the Stamp Duty threshold will be increased to £500,000 immediately until March 31 next year.
Sunak confirmed rumours of the Stamp Duty holiday during his summer economic update this afternoon.
The aim is to boost the housing market and the wider economy to help the UK recover from the consequences of the coronavirus pandemic.
It comes after the property market was effectively closed between the end of March and mid-May.
Agents and portals have said there has been more demand since the market reopened but it is so far unknown if this will transfer into sales.
Rob Wellstead Managing Director of Lenwell said:
'Agents have definitely seen a strong return in the sales market but this is after at least two months of almost zero sales transactions. In June 150% more houses were instructed for sale than May but up until the 30th June 2020 instructions were down by 30% against Jan to June 2019.'
'Lettings did not suffer as hard as sales. We experienced a drop in new lets by 25% in April and May but business returned to normal figures in June with July figures looking like they will be the highest of the year so far.
'I expect this will help to maintain a buoyant sales market but plans need to be in place to deal with the 'cliff edge' created when the Stamp Duty changes back in March next year.'