Stamp Duty Changes
Has Christmas come early for many?
The Chancellor George Osborne has released his Autumn statement and for once it was great news for the housing market. For years there has been call for reform. The system was outdated and in many ways punished buyers who ventured into higher price brackets. House prices which hovered around the £125,000, £250,000 and £500,000 were held back due to a buyers reluctance to pay any more due to the jump in stamp duty. For example a house at £250,000 would cost a buyer £2500 in stamp duty. Pay a penny more and the stamp duty jumped by £5000 to £7500. Not anymore! Under the new scheme 98% of buyers will be better off as nobody will pay stamp duty on the first £125,000. The system then becomes tiered. A bit like how income tax works really.
What are the new rates?
We’ve created this table to show you how the new rates work and how they apply to you. If however you are struggling to work them out, you can either give me a call or click here and use the handy calculator which has been provided by HMRC.
Why have the government done this?
A great question and one which is being asked by many. Our views are to help a housing market which in London was showing signs of cooling. Sceptics may say it’s due to next years elections and a way to win votes. Whatever the reason, we do know it will help home movers across Lancaster and Morecambe. It may also help those sellers whose house price was trapped at a level because of the old stamp duty levels. Could house prices increase? For those who are worth in the region of £250,000 it is certainly a possibility!
So, has Christmas come early? I have 9 families completing on properties this week. I already know that one buyer intends to use the money saved towards new carpets and another who plans to treat the children with a playhouse for the garden! What do you think?
My name is Michelle and I am a director at JDG Estate Agents. If you would like to chat about how the new stamp duty rates affect you or indeed talk about anything else property, please call me on 01524 843322.