Changes in Stamp Duty and what it means for you

 

 

The recent Autumn Budget plan saw many changes to the current Budget. One of the biggest talking points is the immediate abolishment of stamp duty tax for first-time buyers purchasing a property worth up to £300,000. This is great news as it is believed that 95% of first-time buyers will benefit, whilst 80% will not pay any stamp duty at all! It is also estimated that an additional 3,500 first-time buyers will be able to purchase in the next year. Alongside the change in stamp duty was the announcement of a £44bn plan to build 300,000 new homes by the mid 2020’s.

Before the change, stamp duty was paid on house purchases of over £125,000. This has now been raised to £300,000 for first-time buyers meaning the purchase of a property up to this amount will have no stamp duty tax. It also means that first-time buyers will pay less stamp duty on properties between £300,000 and £500,000.

There are also other beneficiaries from the axe of stamp duty. The Office for Budget Responsibility (OBR) has said that the main gainers of this axe will be current homeowners as the impact will likely push house prices upwards. The OBR has stated that this cut is expected to boost house prices by around 0.3% in the next year.

So if you’re a first-time buyer thinking of making your first purchase, now is the time! Get in touch with Norfolk Property Online to see how we can help you and your search for a property. We can be reached on 01603 300900 or by email: [email protected]