The Government recently announced it is cutting Stamp Duty Land Tax for those purchasing a residential property as part of its bid to jump-start the economy. 

In practice this will mean the level at which people begin paying the duty will double from £125,000 to £250,000. To help first-time buyers get on the property ladder, the level first-time buyers start paying stamp duty will rise from £300,000 to £425,000.

In addition, the government is allowing first-time buyers to access the relief when they buy a property costing less than £625,000 rather than the current £500,000.

The Government has claimed the plans will allow 29,000 more people to move home each year, in turn boosting household consumption and supporting industries which rely on the property market, such as removal companies, decorators and plumbers. 

Chancellor Kwarsi Kwarteng said the changes will be immediate and permanent, adding: “Home ownership is the most common route for people to own an asset, giving them a stake in the success of our economy and society so to support growth, increase confidence a“help families aspiring to own their own home”.

Author:  Sarah Freeman, V&A Homes

Photo by Elena Mozhvilo on Unsplash