Big Boost for First Time Buyers
Chancellor Kwasi Kwarteng’s announcement to the changes to the stamp duty will certainly be a big boost for many, and here Kate Patrick, Head of Estate Agency for H&H Land & Estates, breaks down what it all means:
“The Chancellor has revealed a package of major cuts to Stamp Duty Land Tax. He expects to increase additional residential investment, incidentally, boost spending on household goods, and support the hundreds of thousands of jobs in the property industry, from removals companies to decorators.
He calculates the doubling of the zero rate band, from £125,000 to £250,000, means that 200,000 more people every year will be able to buy a home without paying any Stamp Duty at all. A typical family moving into a semi-detached property – he calls them “the standard buyer” - will save £2,500.
He goes even further to support first time buyers, who will now pay no stamp duty up to £425,000 - previously set at £300k.
There is an increase in the value of the property on which first time buyers can claim relief. This goes from £500,000 to £625,000. This tax cut takes effect from midnight today (Friday 23 Sept 2022).
This is good news for both buyers and sellers. Prices are holding their own, and a steady supply of property is coming forward – and there are buyers out there ready to move! The cuts to duty can only enhance the prospects for both sides of the market.
Coming at a time when mortgage rates are likely to start rising, this could also help to balance the longer term costs of transactions for purchasers.
Finally, in the benefits section, these are permanent changes – and are not just ‘stamp duty holidays’ ending after a short time and causing problems for all concerned as people rush to complete by the deadline.
This is particularly good news for those entering the market for the first time, with stamp duty help all the way up to £625K – this is obviously aimed at property costs in the south east of the country, and may have a much wider effect in the north.
Sadly, there’s no help at the top end, for elderly downsizers, for example, or to alleviate the log jams which occur in chains. And measures to increase the supply of new homes have only been tackled by increasing the amount of surplus government land reduced for sale. There’s no immediate help or encouragement for energy efficiency in houses either.
Overall though, these proposals are welcome and will have a clear effect on what is possible for all concerned.
If you are thinking of selling or moving, and have a property to sell, you should contact us directly. The same is true of buyers, both experienced and first time. It is a good time to make a move!”
H&H Land & Estates is a leading company in the north of England who specialise in property and land. They have an exceptional and skilled team who are there to provide a catered service to all their clients. For further information please contact Kate at the Carlisle Office on 01228 406 260, or at [email protected].