According to the Financial Times the recent cut in the property transaction tax (Stamp Duty) may give a leg up to first time buyers. This is still up for debate however, as these savings may be dwarfed by the high borrowing costs as interest rates continue to rise.
But what are the immediate effects of these changes? Well, within the hour of the Chancellor announcing the changes to stamp duty, Rightmove traffic increased by 10%!
These changes are an opportunity for home buyers to put the money they would have spent on stamp duty towards moving in costs, legal expenses, and renovations.
Effective immediately, potential buyers in England and Northern Ireland will pay no stamp duty on the first £250,000 of a property’s value — double the previous £125,000 threshold — and first-time buyers will pay no tax on the first £425,000, up from £300,000.
This is yet to be determined. The taxation rules on property sales in England and Northern Ireland are separate from those in Wales and Scotland. The reduction in stamp duty rate announced in the Chancellor’s statement will apply to England and Northern Ireland only.
We have picked out some of our own properties in England that now have no Stamp Duty costs.
