Thu 04 Dec 2014
Today, 4th December 2014, new rules come into place which will reduce stamp duty costs for the majority of homebuyers. If you’re buying a home for less than £937,500, from today you will pay less stamp duty.
Here at David Lee, we expect this to have a positive effect on local home movers, as stamp duty has historically been a financial obstacle for purchasers. The huge majority of our local property changes hands under the threshold price of £937,500, which is great news for potential purchasers.
For example, a homebuyer paying £270,000 would have previously had a stamp duty bill of £8,100, but will now only have a bill of £3,500 – a huge saving of £4,600. Not only does this really help purchasers, it also removes the stamp duty brackets which damaged the market by stopping sales prices from increasing. The local market has been massively affected by the increase in stamp duty from 1% to 3% at the £250,000 threshold; the new costs will remove this issue and allow the market to move more freely.
The only concern we have is that the reduction in stamp duty may lead to purchasers being willing to pay more for property, resulting in further increases to house prices.
To find out more about the new rules, visit https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/382324/Stamp_Duty_15.pdf
To work out your new stamp duty amount, visit http://www.hmrc.gov.uk/tools/sdlt/land-and-property.htm