Chancellor Kwasi Kwarteng has today confirmed the anticipated cut to stamp duty rates alongside a number of measures in his mini-budget statement designed to boost growth and business investment.
Unlike the stamp duty holiday introduced during the pandemic, this will be a permanent cut to the rate and will become effective immediately across England and Northern Ireland.
What does this mean in practice?
There will be no stamp duty levied on the first £250,000 of a property sale price, instead of the existing £125,000, reducing bills for most movers by up to £2,500.
Average England House Price (Land Registry Data July 2022) - £312,000
Current stamp duty bill - £5,600
New stamp duty bill - £3,100
Saving is £2,500 (-45% of the original bill)
First time buyers
Only pay stamp duty on purchase prices over £425,000, an increase from £300,000.
For properties purchased between £425,000 - £625,000, first time buyers will still be entitled to relief. This means they will only pay 5% stamp duty on properties between these values, a £125,000 increase on the current banding.
This highlights a fantastic opportunity for new and existing homeowners to take advantage of. If this could be the difference for you, either to start looking for your first property or to make the next move up the property ladder then get in touch with the Poole Townsend team.