James Newman, Director of Stoneacre Properties discusses the impact of today’s government announcement on stamp duty.
The government has announced that stamp duty, a land tax procured from the purchasing of a property in England and Northern Ireland, has been waived on all homes being sold for less than £500,000.
Chancellor Rishi Sunak announced the new measure, in effect until the 31st of March next year, will benefit nine out of ten homebuyers and help to reinvigorate the post-pandemic housing market. The impact has been striking, with the online traffic of property website Rightmove exploding by 22% on the day these changes were revealed to the public.
Because the tax is paid after the sale of the home is finalised, even people who are midway through the process of buying a property will benefit from these changes. Buy-to-let investors and people in the market for a second home will also experience some relief due to the tax holiday, seeing a reduction to the stamp duty liability they would have otherwise have paid.
The former value-threshold for stamp duty of £125,000 has been raised fourfold and is expected to save an average of £4,500 for people looking to buy a house. Nick Leeming, the chairman of Jackson-Stops, observed cannily that: “up-sizers across the country are set to gain the most from this stamp duty holiday.” This follows the post-Covid trend of buyers looking for more spacious homes and could save buyers purchasing more expensive homes up to £15,000 in stamp duty land tax.
Not having to pay stamp duty means that all buyers will have more spare cash to help in the moving process, secure deposits and make renovations. Balancing a mortgage and decorating your dream home just got a little bit easier, making now the best time to dive into the property market.
Stoneacre Properties, a leading Leeds Estate Agency, offer a one-stop property-shop serving North Leeds, East Leeds and beyond. The prestigious offices in North Leeds and East Leeds provide residential sales and lettings, full property management services, all aspects of commercial property, legal services and in-house mortgage advice and financial planning.
Stoneacre Properties works with buyers and sellers in order to add enhanced value to their properties whether to occupy or for investment potential.
Progression and development have seen Stoneacre Properties establish themselves as premier Leeds Estate Agents with a traditional philosophy. Treat all our clients with respect, continue to demonstrate a hard work ethic and exceed service standards at a competitive price.
If you are interested in viewing one of the properties Stoneacre has for sale or are looking to sell your home contact them on 0113 237 0999.