There has never been a better time to buy a property. Covid has caused significant challenges to the economy and the property sector.
So far, we have seen changes with record low interest rates and more recently Rishi Sunak, Chancellor, announced a temporary raise of the Stamp Duty threshold to £500,000 until March 2021 to boost the property market and help buyers struggling because of the coronavirus crisis.
What is stamp duty?
The Stamp Duty Land Tax (SDLT) was introduced in December 2013 and applies to people who buy a property or land over a certain price in England and Northern Ireland.
The new changes mean first time buyers and home movers will not pay SDLT up to £500,000 until 31st March 2021.
Buyers purchasing a second home or additional buy to let property will still need to pay SDLT however they will benefit from a reduced rate.
If you are purchasing over £500,000, then you would immediately save £15,000. The rates can be found here https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates
This stamp duty holiday equates to a saving of £2,465 for the average buyer in England. Londoners are set to save the most regionally, with previous stamp duty tax owed on the average London home (£485,794) amounting to £14,290. The North East is home to the smallest saving at £39.00.
What could the impact be on the housing market?
This will provide an immediate boost to the housing market We have already noticed clients who were on the fence now decided to push ahead.
We believe the savings in SDLT will promote the public to spend more on things like furniture as well as renovations which they may have postponed or delayed.
Contact our residential property solicitors in Ruislip, Middlesex
Our expert conveyancing team provide a tailored service to clients and ensure you deal with one solicitor or conveyancer throughout the transaction, so your matter does not get passed around various fee earners.
We pride ourselves in providing clear written and transparent quotes from the outset outlining all likely disbursements and costs so that you do not have any hidden costs at the end of your transaction.
To discuss your property transaction in detail, speak to one of our friendly and approachable conveyancing lawyers today.
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