You are here: Home - First Time Buyers - News -

Stamp Duty cut to zero on homes up to £500,000

0
Written by:
08/07/2020
The Chancellor has announced that purchasers of properties up to £500,000 will pay no Stamp Duty, meaning nine in 10 buyers will be completely exempt from the tax
Stamp Duty cut to zero on homes up to £500,000

The government will cut stamp duty on all transactions up to £500,000 as a temporary measure until 31st March 2021.

The cut will take effect immediately said the Chancellor to ‘capitalise the housing market and boost jobs’.

Rishi Sunak said that the average Stamp Duty bill will fall by £4,500 as a result of the measure and nine out of 10 people will pay no Stamp Duty at all.

He told the House of Commons in his Summer Statement: “Property transactions fell by 50% in May. House prices have fallen for first time in eight years and uncertainty abounds in the market.

“A market that we need to be thriving.”

Richard Donnell, research and insight director at Zoopla, said the benefits of the measure would be seen immediately: “In London and the South East, home to more expensive properties, homebuyers can save up to £14,999 overnight.

“The Government will expect the change to stimulate more housing sales over the second half of the year and that savings made by buyers will be reinvested in home improvements, white goods and furniture, rather than bidding up the cost of housing.”

Andrew Southern, chairman of property developer Southern Grove, added: “This intervention is bold enough to put a rocket under sales volumes as the UK enters the recovery phase.

“It also opens the door to rethinking stamp duty entirely and shifting to alternative regimes in the future such as an annual property tax, which works well in the US and discourages those reluctant to downsize from living alone in large properties and strangling supply.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Revealed: The winners of the Your Mortgage Awards 2020/21

Find out which mortgage lenders offer the best products and services in a highly competiti...
Revealed: The winners of the Your Mortgage Awards 2020/21

Double-digit drop in new housing supply over last year

Demand is still far outpacing supply in the housing market, with net additional dwellings...
Double-digit drop in new housing supply over last year

Six bank statement mistakes that can ruin a mortgage application

Being overdrawn and having a history of payday loans can be red flags to lenders when they...
Six bank statement mistakes that can ruin a mortgage application

Guide to borrowing past retirement age

As an older borrower, you may be concerned that a lender will not offer you a mortgage pas...

Mortgage market biased against homeowners

Buy-to-let property investors are unfairly favoured in the mortgage market, an independent...

Should buy-to-let investors ‘go Dutch’?

The Netherlands is revealed as Europe’s top buy-to-let property hotspot

Private sector tenants in poverty double in decade

The number of private rented sector tenants in poverty has doubled in the last decade from...

Large mortgage broker firm launches with fees of over 1%

An insurance firm has launched a mortgage advice service

Second steppers targeting detached properties

Those living in their first home are increasingly looking to reduce the steps to their lon...

Mortgage Calculators