Changes to stamp duty announced by the Government will save house buyers around £4,500 on average and up to £12,000 on a £500,000 property if they move home before March 2021.
Chancellor Rishi Sunak confirmed the increase on the threshold on which stamp duty must be paid on property purchases to £500,000 in his summer statement on Wednesday 8 July. Previously, stamp duty was payable on properties costing more than £125,000.
The ‘stamp duty holiday’ comes into effect immediately and remains in place until March 31 2021.
How will this affect Kingswood Homes customers?
Paul Jones, managing director of Kingswood Homes said: “This is fantastic news for people looking to move into their new home as quickly as possible.
“Many people have been frustrated throughout lockdown by the limitations of their current homes and a vast number of people are looking to move to a new home with more flexible space and higher specifications.
“This stamp duty holiday will not only offer buyers significant savings but also help them sell their own homes as they look to move quickly.”
How much will you save?
Normally, stamp duty is set at 2% on a property’s value between £125,000 and £250,000 and 5% on £250,001 to £925,000.
On a property value of £275,000 you would pay no stamp duty on the first £125,000; 2% on the next £125,000 and 5% on the remaining £25,000.
This would equate to stamp duty of £3,750.
Paul added: “The stamp duty ‘holiday’ could make larger homes, which buyers thought may have been over their budgets, more affordable and we expect many customers to decide the time is right to move home while there are such savings to be made.”