Autumn Budget 2017: Stamp Duty Changes
The Chancellor of the Exchequer Philip Hammond made a positive announcement yesterday during the Autumn Budget for all those individuals wishing to get on the property ladder for the first time.
With immediate effect, first-time buyers will no longer have to pay stamp duty on the first £300,000 of their first property if it is not worth in excess of 500,000. This is excellent news for first-time buyers and means that the potential maximum saving for buyers would be £5,000. It is anticipated that these changes will mean that 95% of first-time buyers will see stamp duty cut whilst 80% would pay none at all.
These changes took immediate effect from 00.01am on 22 November and will apply in England and Northern Ireland, and in Wales up until the end of March, but not in Scotland. Stamp duty is triggered on the completion of a sale, meaning that any first-time buyers who have exchanged but not yet completed with reap this money saving benefit. However, this benefit will not be applicable if any one of the parties purchasing the property is not a first-time buyer.
The changes have been made with the intention of helping first-time buyers get on the property ladder, and thus, improve on the current regulation that requires stamp duty to be paid at an incremental rate on residential properties worth more than £125,000. This current duty is levied on a staggered basis that begins at 2% for properties between £125,000 and £250,000 and peeks at 12% for the remaining portion over £1,500,000.
This news will remove one of the hurdles facing first-time buyers and will undoubtedly create more movement at this end of the market which in turn will create a rippling effect up to higher value properties.
Overall, this change is a step in the right direction and demonstrates that the Government is attempting to tackle the number of difficulties currently experienced in the housing market. It will have a positive impact on a high proportion of first-time buyers and although it may not solve every problem, when it comes to money, every little helps.
To take advantage of these changes contact our office on 01829 7313000 or search for a property using the property search key above.Back to Blog