- Stamp Duty has been abolished on the first £250,000 of any property purchase, (up from £125,000), making an immediate saving of up to £2,500 for home buyers. Close to half (47%) of all sales in England over the past year were under £250,000.
- First-time buyers could save up to £6,250, because they will now be exempt from stamp duty on the first £425,000. The purchase price at which they can take advantage of this relief has been raised too, from £500,000 to £625,000.
- Second home owners and overseas purchasers will still be required to pay the 3% Higher Rate Additional Dwelling Tax and 2% non-resident surcharge respectively.
- The Chancellor’s announcement only applies to England. In Wales, from October 10th no Land Transaction Tax will be payable on homes priced up to £225,000 (current threshold £180,000), a saving of £1,575 on a property priced £225,000. Those paying over £345,000 are set to pay more.
- For now rates in Scotland remain unchanged, the threshold in Scotland is £145,000. Source: Dataloft, HMRC, Land Registry, Welsh Revenue Authority, Revenue Scotland
We are now a few days into the new stamp duty changes and I am already noticing the difference in the market, such as prospective purchasers who had stopped seeking a suitable property to purchase commencing viewings again.
Even though interest rates have increased in recent times, the stamp duty reductions announced last week by Kwasi Kwarteng have given prospective purchasers fresh impetuous. With us servicing numerous boroughs such as Croydon, Merton and Lambeth, where there are still affordable properties, we have noticed a large portion of properties we are marketing have been getting a lot more interest over the past week.
The stamp duty reductions will help assist in selling various styles of properties from flats to houses. Properties which previously did not have great interest shown in them are now receiving more viewings. In Thornton Heath, I personally think the 3-bed housing market will benefit the most from the reductions, this is because the average three-bedroom home falls within the £425,000 price bracket.
If you are interested in knowing how much you can save on stamp duty, please get in contact so we can point you in the right direction. Alternatively, if you are looking to buy your first home please get in touch and speak with one of our Local Property Experts on 0330 0430002.Leigh Thomas – Local Property Expert