What is the new government stimulus?
On the 8th of July, England and Northern Ireland introduced a new government stimulus on SDLT (Stamp Duty Land Tax). These recent changes arrive at the heels of the coronavirus crisis. The new stamp duty helps potential first property buyers but also those who have owned property before. The stimulus is a temporary raise of the tax threshold to £500,000 of residential property, until the 31st of March 2021.
Moreover, this interim relief will also encourage the housebuilding industry, which was in lockdown during recent months. The 'stamp duty holiday' for house buyers and housebuilders will benefit both the housing market and the economy as a whole. In addition, these new moves also spill over to related industries such as home renovations.
On the 9th of July, BBC Radio 4 reported that individuals spend around 5% of the purchase value of the property on refurbishment and DIY in their new homes on average. Due to this stimulus, new and second homeowners will now have more cash to carry out refurbishments, this money before the stimulus would had to go on stamp duty.
What does the government stimulus mean to JPT?
JPT has kept supplying the flooring and construction industry throughout, and the new stamp duty reduction was well received. The new threshold will provide greater purchasing power and incentivise housemoves. We expect our flooring and construction customers to see an uptick in volume for the next 18 months. This may take place in the form of carpet material such as carpet tubes or laminate floors like hard wearing vinyl flooring cores. We expect higher volumes due stamp duty relief on other sectors such as industrial cores; linked to non woven textiles, transit packaging cores; linked to metal and wood trims and postal tubes; linked to DIY jobs.
To many people, buying a house is a very personal venture. The transition between being a home buyer to being a homeowner is small but powerful. This is because once becoming a homeowner; it creates a sense of belonging and identity. For this reason, individuals like to take steps to customise, refurbish, or repair their most valuable and cherished asset. JPT's customers can help in this process, whether its building an extension, replacing the carpets, artificial grass, roller blind, and more.
How the government stimulus benefits JPT and its customers.
At this time, the SDLT temporary relaxation will help the continuation of JPT, its customers, and the community at large. Furthermore, it will contribute to the national economy. This was reiterated by the head of stamp taxes at PwC who quoted that "the stamp duty holiday might have a positive indirect impact on a long list of related industries, such as housebuilders, conveyancers, estate agents, finance and insurance providers, house movers and furniture and garden retailers.”
We are ready to deliver our products in increased volumes, 24 hours a day. We are here to work to meet the needs of our customers.
