The Government have today announced a cut in Stamp Duty Land Tax (SDLT), as unveiled by the chancellor Kwasi Kwarteng this morning.
But what does this mean for homebuyers, first-time buyers and those in the middle of a transaction?
In her latest article, Conveyancing Partner Clare Hallett outlines what the cut in stamp duty is and what it means for you…
What is the stamp duty cut?
The Chancellor Kwasi Kwarteng announced a stamp duty reduction as part of an emergency ‘mini budget’ this morning (23rd September 2022), which aims to “support growth, increase confidence and help families aspiring to own their own home”.
The cuts unveiled are as follows:
- Currently, home buyers don’t pay any stamp duty on the first £125,000 of a property’s value. This will be doubled to £250,000
- First-time buyers currently pay no stamp duty on the first £300,000, this threshold will also be increased to £425,000
- The value of property on which first-time buyer can claim relief will increase from £500,000 to £625,000
How long will the stamp duty cut last?
The Chancellor continued: “The steps we have taken today, mean that 200,000 more people will be taken out of paying stamp duty altogether. This is a permanent cut to stamp duty effective from today.”
Conveyancing Partner Clare Hallett says: “Given the increase in property values I think the increase in the nil rate band is long overdue. The announcement that it is permeant will also be a huge relief to both the public and conveyancers!”
What does the stamp duty cut mean for homebuyers?
The cut means that homebuyers will no longer pay stamp duty on the first £250,000 on a property’s purchase price.
This will obviously have a positive impact on a large number of homebuyers.
Clare continues: “Whilst the cut in the nil rate band will be welcome interest rates are rising and thus mortgages are more expensive. We need some stability and measured and sustainable growth in the property market whether the measures alone announced today will achieve that remains to be seen.”