Great news for those trying to get their foot on the property ladder! This week, George Osborne announced a stamp duty overhaul, offering a real boost to prospective homebuyers across the entire country. With the government estimating that 98% of those paying stamp duty are set to save thousands, at Hopkins we’re buckling down for an influx of clients that are more able to facilitate a move. Here’s what you need to know about the stamp duty changes.
So what are the new rules for stamp duty?
From the 4th December, stamp duty overhaul means the new system will become much more like income tax. Homebuyers have a tax-free threshold of £125,000, and stamp duty will only be paid on purchase prices over this amount.
For example, someone buying a home for £180,000 would pay nothing on the first £125,000 of the property, and would pay 2% on the remaining £55,000 – leaving them with a stamp duty bill of £1,100, rather than the £3,600 they’d have paid under the old system.
The new rates are as follows:
• Up to £125,000: 0%
• £125,001 to £250,000: 2%
• £250,001 to £925,000: 5%
• £925,001 to £1.5m: 10%
• Above £1.5m: 12%
How do the new rules differ from the old ones?
In the past, stamp duty had been criticised for the sharp leaps between property bands. Under the old system, someone buying a home for £250,000 would have paid just 1% in stamp duty – but if the price of that property increased by even just £1, they’d end up paying 3% instead, taking the total cost up to £7,500. The new system makes it fairer for all those looking to buy a home.
How much could I save?
George Osborne predicted that the average homebuyer will save £4,500 on stamp duty – only those buying properties worth more than £937,000 will see an increase in the amount they pay. The average family home in the UK costs around £275,000 – someone buying a property for this price stands to save £5,250; money that can then be put towards renovations, extensions or even just a luxurious Christmas.
How can Hopkins help?
We know that buying a home can be a complex process – especially when changes like this can happen in the blink of an eye. We’re proud to say that our conveyancers have been accepted onto the panel of approved Midlands-based ‘Help to Buy’ solicitors, so you can be totally sure you’ll be receiving great advice from experienced professionals at this challenging time. Our team will help to ensure that you have a good understanding of the entire process, as well as ensuring things run as smoothly as possible for you.Request a Callback
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