How Does The Stamp Duty Changes Impact The Market?
The lockdown has had a significant effect on a number of industries throughout the last 4 months, especially the housing market. The UK government has recognised this struggling time, which is why Chancellor Rishi Sunak has announced a stamp duty holiday.
Running until 31 March 2021, this is a bid to boost the struggling housing market which has taken a significant hit due to the coronavirus pandemic.
This temporary measure could have a lasting impact on people who are looking to buy homes during this challenging and unfamiliar time.
What is Stamp Duty?
Stamp duty land tax (SDLT) is a lump sum payment you have to pay when buying a property or piece of land over a certain price.
All house-buyers in England and Northern Ireland paid stamp duty on properties over £125,000; however first-time home buyers did not need to pay stamp duty unless the property you were buying was more than £300,000.
The rate a buyer has to pay varies depending on the price and type of property.
The Freeze on Stamp Duty
Effective immediately, the threshold for the payment of stamp duty has been raised to £500,000. This new plan could potentially save future house buyers tens of thousands of pounds.
Although it is in place for only 6 months, these measures will help aid the fragile economy.
Second home owners continue to pay the 3% stamp duty surcharge on values above £40,000.
The Effect on the Housing Market
This change could see a huge impact in the housing market, encouraging buyers to use this time period to purchase their dream property.
For instance, a buyer purchasing a property for £500,000, the new system would save £15,000 on stamp duty, compared to the previous rate.
The announcement will affect all sections of the market by helping potential buyers afford their desired home at an affordable price – taking advantage of these incredible savings rarely seen in the property market.
If you’re looking to buy your dream home, Taylors Estates team of experts are here to help you with all your independent sales, lettings and property needs. Their simple and straightforward approach ensures they understand what your property needs are and how they can help you achieve them with their quality services.
If you would like to find out more about their fantastic services, get in touch with their friendly team today by calling 01772 881717 and they will be happy to help you with any enquiries and questions you have.