We’ve all waited patiently for the new chancellor’s budget, and here is the hotly anticipated news, the government will be introducing a cut to stamp duty in England and Northern Ireland. So what does this mean?
Currently, you don’t have to pay property tax (aka stamp duty) on properties less than £125,000. Following Kwasi Kwarteng’s announcement, this has been doubled, and the threshold from Friday will permanently stay at £250,000 - pretty sweet for those looking to upsize.
But that’s not all the good news - if you’re a first-time buyer your stamp duty threshold has been increased from £300,000 to £425,000 - wow. This is a pretty drastic increase to say the least.
With these changes implemented, it’s estimated that 200,000 people could be saved from paying a penny of stamp duty.
So simply, the stamp duty rates are now:
0%: £0 - £250,000 (£425,000 for first time buyers)
5%: £250,000 - £925,000
10%: £925,000 - £1,500,000
12%: £1,500,000+
For the property industry, and those that currently have their homes on the market, it’s great news, as we could see a surge in interest at a time where people are a little more tentative with their money. It’s the government’s way of attempting to boost the economy, and we are excited to see how it pans out.
We’d love to hear from you, and how you feel about this news. Is it encouraging you to look or making you worry about the impact on house prices?
Get in touch, share your comments, and if this has tempted you to take a look at what is out there, come and register your interest with us!
