Stamp Duty is an additional charge on the purchase price of a property or land in England and Northern Ireland, normally payable on properties above £125,000.
However, the Government recently announced a ’holiday’, lifting the threshold to £500,000, effective from 8th July 2020 to March 31st 2021 on both leasehold and freehold. Savings range from £2,500 on a £250,000 valuation, rising to £15,000 on £500,000.
Whilst first time buyers were already exempt from Stamp Duty on properties up to £300,000, they will enjoy significant savings on purchases above that figure. They could also benefit from people wishing to ‘upsize’ to larger properties, by releasing smaller second hand homes currently in short supply and potentially offering better value than purchasing a brand new property using Help to Buy.
The Stamp Duty changes also apply to second home investments, but they will continue to carry a 3% surcharge on values up to £500,000 and above.
Designed to boost activity and confidence in the housing sector, The Centre for Economics and Business Research expects the policy to prompt a 6% rise, equivalent to 41,000 extra sales, helping to protect the housing sector 750,000 jobs.
There is no evidence that the policy is encouraging sellers to increase prices, but it is helping to secure deals, allowing all parties to move on, with plans to use the savings on refurbishing, new furniture or transforming outside space.
Although some mortgage deals have been withdrawn in recent months, there are a range of options available to buyers, at favourable interest rates, tailored to individual financial circumstances.
So, whatever your plans: a first timer, or upgrading to a family property, or wanting to downsize – or acquire a second home – our trained Mortgage Centre teams can advise. Just give us a call.