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Stamp Duty below £500,000 has been cut until 31st March 2021, saving home movers up to £15,000 from the cost of moving.
The Chancellor Rishi Sunak announced a major stamp duty cut on the 8th July, fuelling more activity in what has already become a bustling property market.
Speaking at the summer economic update, the Chancellor revealed plans to raise the stamp duty threshold from £125,000 to £500,000.
The stamp duty holiday starts immediately and will run until the 31st March 2021.
Close to nine in ten property transactions will no longer be subject to paying stamp duty.
Before the cut was announced, homes purchased up to £125,000 were exempt, with 2% charged on the portion from £125,001 to £250,000, 5% on the portion between £250,001 to £925,000, 10% on the portion between £925,001 and £1.5m and 12% on anything above £1.5m.
First-time buyers received exemptions on the first £300,000 as long as the home doesn’t cost more than £500,000. Meanwhile, people buying an additional property of £40,000 or more would pay an additional 3% on top of the regular stamp duty rates.
The 3% stamp duty surcharge will apply on top of the new holiday rates, so people buying additional homes will attract a 3% stamp duty bill on the first £500,000 of property.
This will still result in a saving, because the 3% rate previously applied on the first £125,000, with higher rates above that.
The new measures will mean that purchasers will only start to pay stamp duty on property above £500,000 if they are buying their first home or moving up or down the housing ladder.
Locally we have already seen a surge in activity from the announcement, as those considering a home move in the next year or so bring their plans forward to take advantage of the saving.
This influx of more available stock and buyers will boost property transaction numbers along with confidence in the housing market.
If you are considering a move within the next 12-18 months, now is an ideal time to capitalise on the increased number of motivated buyers along with the savings made from the stamp duty cut.
For advice on how much you could save from the stamp duty cut, contact our team St Ives: 01480 498400 Royston & Melbourn: 017632 94448