Fri, 23 Sep 2022 | Stamp Duty Land Tax
In the mini budget today, Chancellor Kwasi Kwarteng has announced that stamp duty tax will be cut to provide a boost for first time buyers and allow more people to make a move.
Starting today, home movers will not have to pay stamp duty on the first £250,000 of a property. This is double the initial threshold of £125,000 which had been in place since March 2006.
For first-time buyers, the threshold has been raised from £300,000 to £425,000, making homeownership more accessible for those trying to get on the property ladder.
These reforms are effective immediately, which is great news for anyone currently purchasing a property. That extra bit of cash will certainly help with any home improvements that need to be made in the new home!
It will also allow many home movers and first-time buyers to increase their budget for their property search, giving the property market an additional boost.
These measures are expected to remove stamp duty payments for over 200,000 buyers. It could also mean that over three times as many house sales in England will be tax free!
Our Managing Director, Mark Towell, says “Following yesterday’s announcement of the Bank of England raising interest rates, we are delighted to have received such outstanding news for first time buyers today. Currently, we have 136 first time buyers buying a property below £425,000 and each will be saving up to £6,250 as a result of the Stamp Duty tax cut. This negates the impact felt by first time buyers of any interest rate rises and actually gives the average first time buyer an additional £260.41 per month over a two year period (based on a standard 24 month mortgage rate)”.
He adds, “we think this is fantastic long term news for the property market as every transaction requires either a first time buyer or an investment buyer to start each chain moving!
“We currently have 185 properties for sale below £425,000. If you are interested in buying a property or would like to understand how the interest rates will affect your current or future mortgage, please register below and one of our agents will be in touch with you”.
These changes come one year after the end of the stamp duty holiday, which was put in place to prop up the housing market throughout the COVID-19 pandemic. Initially raising the nil-rate stamp duty band from £125,000 to £500,000, the holiday pushed property prices to record highs and proved to be influential in helping the property market to thrive under unprecedented circumstances.
We look forward to seeing how a permanent cut to stamp duty tax will provide a further boost to the property market and allow more and more first-time buyers to achieve home ownership.
Find out how much you could save from the Stamp Duty tax cut below:
Ready to make a move? Take advantage of the stamp duty cut today and the huge demand it will undoubtedly generate on the current marketplace. Book a valuation today or register with us to be the first to find out about properties you’ll love!