Good news for First Time Buyers – Reduction in Stamp Duty Land Tax with immediate effect
The much anticipated mini-budget was announced today, and as we hoped, cuts to Stamp Duty Land Tax with immediate effect was a major feature to help boost the economy .
The Government's announcement on a Stamp Duty Land Tax cut rather than a stamp duty holiday has been targeted to boost the lower end of the market helping first time buyers purchase their own home. The tax only affects people who are looking to buy a property in England and Northern Ireland. At the moment first-time buyers currently pay no stamp duty on the first £300,000, this will be raised to £425,000. First-time buyers will be eligible of relief up to £625,000, a significant increase from the old rate of £500,000. The threshold at which SDLT becomes liable will also be raised from the current level of £125,000 to £250,000 meaning a saving for all buyers.
Stamp duty cuts are often used by governments to encourage activity in the housing market to allow a greater mobility in workforce. The theory is that homeowners will pass on the savings by spending extra on building work, home improvements, fixtures and fittings as they move home, therefore encouraging economic growth.
Kerr and Co are delighted help has been given to the lower end of the market especially for those looking to purchase their first home.
To find all our listed properties for the first time buyer market go to Featured Properties