Act now to take advantage of new stamp duty rules

Help to BuyIn his Autumn Statement George Osborne announced some welcome news for homebuyers. Revealing a new graduated approach to stamp duty, Osborne has ensured the British public that 98% of homebuyers will be pay less duty on property purchases from today.

The new rules indicate that those buying property worth less than £900,000 for instance, should see a saving in the amount of stamp duty they pay.

Unlike the current system, the new system will work in a similar way to income tax. The rate of duty will only be applicable on the proportion of value above each threshold, rather than the complete property amount. This will avoid homebuyers facing a huge jump in costs as the property price increases.

Under the new regime, a homebuyer purchasing a property for £275,000, for example, will pay nothing on the first £125,000, 2% on the next £125,000 and 5% on the remaining £25,000, resulting in a total tax duty of £3,750. Under the old rules a homebuyer purchasing a property for £275,000 would have paid 3% on the total purchase price, i.e. £8250!

Purchase price of property (£)  New rates paid on the part of the property price within each tax band 
 0 – 125,000  0%
 125,001 – 250,000  2%
 250,001 – 925,000  5%
 925,001 – 1,500,000  10%
 1,500,001 and over  12%

Our Open to Offers weekend, taking place on 6th & 7th December, will be the perfect opportunity to take advantage of these new rules. With thousands of vendors opening their doors and inviting offers from potential purchasers, now is the time to take a look at the properties included in this promotion and contact us to arrange your viewings.

With these stamp duty reforms and our Open to Offers event, affordability is the best it’s been all year!

– Less Stamp Duty for 98% of homebuyers

– Increased probability of accepted offers

– 1000s of properties included

– New Build and Help to Buy opportunities

– View multiple properties on 6th & & 7th Dec

– A great time to review your mortgage options

To take part in our Open to Offers event, contact a Countrywide Estate Agent today!

Posted by: Nicola Severn Categories: Buying, Buying Property, House Prices, Industry News, Uncategorized Tags: , , , , , , 3 Comments

3 Responses to Act now to take advantage of new stamp duty rules

  1. avatar Shaun says:

    This will just act to push up house prices and will not benefit anyone except the government.

    It will also inflate a slightly leaky property bubble just in time for the general election.

    Most of the general public are not stupid enough to get in any way excited by this non news.

  2. avatar Rosie says:

    Don’t be fooled by the Governments claim that 98% of home buyers will be better off. It is not just buyers at the top end of the housing market who will be no better off. Anybody purchasing a house at £500,00 – of which there are many on the market in the South East – won’t be a single penny better off. The stamp duty was £15,000 under the old system and calculates at £15,000 under the new system. This has been very cleverly skated over and not mentioned under any price comparisons anywhere to my knowledge!

  3. avatar Ray Ellis says:

    Great news for home buyers.

    Not so great for those of us who completed in the last fortnight and paid £5k+ more than if our completion had been delayed!