With the economy suffering shock from the COVID-19 pandemic, Chancellor Rishi Sunak has announced a measure that could save average the homebuyer over £2,000. Stamp Duty will be cancelled on all property purchases up to half a million pounds, in a bid that Sunak hopes will provide the much-needed kick start to the property market in England.
Stamp Duty is payable on the purchase of a property, normally within two weeks of completion, and is charged in ‘slices’ based upon the property price. A 2% charge applies to the property between £125,000 and £250,000, with the average home in England selling at £247,000, where existing home-owners buying their next property could potentially save around £2,440 each.
There are however different bands that apple to first-time buyers. Already exempt from stamp duty if a first-time buyer purchases a house for up to £300,000 or less, the majority of people looking to make the jump onto the property ladder for the first time will see no financial benefit from this stamp duty holiday. The one benefit that first-time buyers will see is that existing home-owners are more willing to sell, knowing that they will be saving money on their next purchase.
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