Stamp duty news welcomed by property industry

Long-established Crediton estate agency, Helmores, believes that the recent changes to Stamp Duty charges, announced in the Chancellor of the Exchequer’s Autumn Statement on 3 December and in effect now, is a much fairer system for home buyers. 

Under the new rules, George Osborne has said that 98% of homeowners in England and Wales will pay less Stamp Duty as of midnight on 3 December, meaning that home buyers could save an average of £4,500 on stamp duty (for a property costing £275,000), which bring down the cost of buying a property for all but the highest valued properties.

Associate partner for Helmores, George Clover, says: “This is huge news for home buyers and a day we believed to be a long way off. Essentially it means that stamp duty will be now calculated on a more appropriate graduated rate, working in a similar way to income tax. Those who have already exchanged contracts but haven’t completed can choose which scheme to use, although most will benefit from the new calculation. “

No tax will be paid on the first £125,000 of a property, followed by 2% on the portion up to £250,000, 5% on the portion between £250,000 and £925,000, 10% on the next bit up to £1.5 million and 12% on everything over that.

George continues: “This is great news for buyers, as we believe it is a fairer system that is much more appropriate for the majority of purchasers. From a seller’s point of view, this could have a benefit locally as the proportion of houses for sale in the £125,000 - £750,000 bracket is high. However, a word of caution, as the change in stamp duty may mean the £250,000 threshold is removed, but whether it will make a difference to house prices remains to be seen. We watch the market with great interest!”