The Government has announced a stamp duty holiday from 8th July, which is great news for homebuyers! With house sales stalling in March and April due to the Coronavirus, the housing market is now starting to pick up and buyers have now been given an extra incentive to get moving.
Stamp duty is the tax paid by buyers when purchasing a property and has previously been charged in increasing rates depending on the value band in which the property (or land) falls, starting at £125,000, or £300,000 for first time buyers. The stamp duty holiday replaces the first time buyer relief and extends to apply to the first £500,000 of the property value and runs for any buyers completing between 8th July until 31st March next year.
Any property that is sold higher than the £500,000 threshold will still have stamp duty applied at the incremental amount, with next portion (£500,001 to £925,000) taxed at 5%, and £925,001 to £1.5 million taxed at 10%. Anything over £1.5 million will be taxed at 12%. The good news is that landlords and second home purchases will also be eligible but they will still have to pay the extra 3% stamp duty they would be charged under the previous rules.
The move is intended to boost the property market and according to the Chancellor, the average stamp duty cost will fall by £4500, and buyers of properties valued at over £500,000 could save as much as £15,000. Nearly 90% of buyers not paying any stamp duty at all, which is a huge incentive to find the home of your dreams now.
At Hibberts Solicitors we have a highly experienced conveyancing team who can help you negotiate the new rules to take advantage of the stamp duty holiday and save money in purchasing your property. If you are a key worker we’re also offering a 10% reduction in our conveyancing fees until the end of August* which will reduce your purchasing costs even further.
To find out more about our conveyancing services contact us here and for more details on our key worker offer click here.