Changes to the Stamp...

At the end of last week, The Chancellor announced a permanent and welcome cut to stamp duty thresholds, effective from 23 September 2022.

The cut raises the price threshold of a property before stamp duty is paid from £125,000 to £250,000. First-time buyers currently only start to pay stamp duty above £300,000, and this limit will jump to £425,000.

He also announced that “an increase to the value of the property on which first-time buyers can claim relief, from £500,000 to £625,000.” This means that an additional 200,000 people will not pay stamp duty on their housing purchases.

As part of the Government “Growth plan,” National insurance rates will also be cut from November – with the 1.25% rise in (NICs) contributions (which took effect earlier this year) being reversed. This change is expected to benefit nearly 28 million people and will be worth on average £330 in 2023/24.

Whilst the Bank rate has moved up 7 times in as many months, we must remember that rates remain historically low and mortgage approvals are back to pre-pandemic “normal” levels. For the first time in a while 5 year fixed rates are slightly more attractive than the 3-year fixed rates, this is another good sign for buyers who can budget into the future.

Angi Cooney commented “Prices remain stable at present, there is still strong demand for properties and whilst prices can move up and down people will still move if they are feeling secure and need to move for whatever reason. Autumn is usually a busy time for property sales and these recent changes to aid growth in our economy will certainly help many people looking to move”

A brief overview:Up to £250,000 - 0% stamp duty

£250,001 - £925,000 - 5% stamp duty

£925,001 - £1.5 million - 10% stamp duty

about £1.5 million - 12% stamp duty

If you are a first time buyer there is No Stamp Duy to pay up to a property value of £425,000

For more information view the official Stamp Duty Land Tax Factsheet here  or why not call into the offices to have a chat and a cuppa