Stamp duty is to be reduced with immediate effect, as announced by the Chancellor, Kwasi Kwarteng, in today’s ‘fiscal event’.
The threshold above which property buyers now have to pay in stamp duty has increased from £125,000 to £250,000. A typical family moving into a semi-detached home will save £2,500 in stamp duty, according to the HM Treasury.
If the property costs less than £425,000, first-time buyers are exempt from paying stamp duty. The home valuation that first-time buyers can use to qualify for assistance will increase from £500,000 to £625,000.
The reductions in stamp duty are applicable to homes in England and are intended to help stimulate the property market and assist first-time homebuyers in joining the property ladder. According to Kwarteng, “the steps we have taken today mean 200,000 more people will be taken out of paying stamp duty altogether.”
HM Treasury says up to 29,000 more individuals will be able to move into homes thanks to the doubling of the nil-rate band, which would “in turn boost household consumption, which will increase confidence in the economy and support thousands of businesses who rely on the property market. This includes, for example, estate agents, cleaners, builders, contractors, removals companies, plumbers, decorators and others.”