On Friday 23rd September, the Chancellor of the Exchequer Kwasi Kwarteng unveiled his plans to cut Stamp Duty Land Tax. The major tax cuts will help people across all levels of the property market, especially first time buyers, some of whom will pay no stamp duty at all.
Effective immediately, the nil rate band has doubled from £125,000 to £250,000 which means that the average buyer in England will save £2,500 on stamp duty. Put simply, you will only need to pay stamp duty if you’re buying a property that costs more than £250,000.
First time buyers could save up to £6,250, as they will now be exempt from stamp duty on the first £425,000 of their property purchase. Moreover, the property price at which they can take advantage of this relief has been raised too, from £500,000 to £625,000.
Gareth Williams, Managing Director at Hunters says: 'This is a great opportunity for first time buyers to get their foot on the property ladder. Increasing the zero rate band also helps those thinking about downsizing, which would then in turn release the latter part of the market, making more stock available for buyers.”
Despite the positive impact that stamp duty cuts will bring to buyers, we know that increased mortgage interest rates can be worrying. That’s why our team of mortgage experts are on hand to help you navigate the ongoing mortgage crisis. Find out more about our mortgage services and book an appointment with an adviser today.