Good news for new home buyers as Government cuts Stamp Duty
Hopkins Homes welcomes the new Stamp Duty changes that were announced today in the mini-budget statement, expecting it to help more people get on the property ladder by saving thousands of pounds.
Monika Hanlon, Group Sales & Marketing Director, said: “This is very positive for both home buyers and the property sector itself. Cutting Stamp Duty will go a long way to helping those all-important first-time buyers get on the property ladder. Furthermore, it will provide a much-needed boost to the local and national economy.”
On a £500,000 property, a first-time buyer would have paid £10,000 in Stamp Duty, but under the new rules will now only pay £3,750, saving £6,250.
On the same property, a non-first-time buyer would have paid £15,000 in Stamp Duty, but will now pay £12,500, saving £2,500.
So, what is Stamp Duty and what are the changes?
Put simply, Stamp Duty is a tax you must pay when you buy a property or land above a certain price.
Today, the Stamp Duty thresholds for England and Northern Ireland have changed to:
- 0% on the first £250,000 of a property’s purchase price (previously £125,000)
- First-time buyers will get an even higher threshold, paying no Stamp Duty on the first £425,000 of the sale price (previously £300,000).
- To qualify for the first-time buyer relief, the maximum property purchase price is £625,000, up from the previous limit of £500,000.
Thereafter, thresholds remain the same at:
- 5% between £250,001 and £925,000
- 10% between £925,001 and £1.500,000
- 12% over £1,500,000
The Chancellor said: “The steps we’ve taken today mean that 200,000 more people will be taken out of paying Stamp Duty altogether”.
As a renowned builder of exceptional new homes throughout East Anglia, Hopkins Homes believes this will create a significant and positive shift in the housing market.
Monika added: “The timing is especially welcome giving the imminent ending of the Government’s equity loan programme ‘Help to Buy’ for first-time buyers.”
“We don’t just build houses, we create homes of distinction in beautiful locations, blending with their existing environments. If the news today helps more buyers on their path to owning a Hopkins Home, then I welcome it wholeheartedly.”