The first Autumn Budget, due to be delivered on Wednesday 22nd November, could see Chancellor of the Exchequer Phillip Hammond deliver some promising news to the property market.
It has been rumoured that the Chancellor is considering slashing Stamp Duty for first-time buyers in a move aimed at helping the younger generation struggling to get onto the property ladder.
Critics have long claimed that Stamp Duty has been holding back the property market, especially in London where the number of first-time buyers has fallen 12% since 2014. According to statistics published by the Land Registry the average price of a London property is now £428,546 incurring a £11,427 SDLT bill. Even starter homes costing £250,000 would require the buyer to fork out an additional £2,500 in Stamp Duty. Young professionals, earning a good living are struggling to afford buying a home with many resorting to the “Bank of Mum and Dad” to gift or subsidise deposits.
What is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) is a government levy payable by the buyer on all homes valued over £125,000 with the amount you pay being dependent on the value of the property being purchased:
|Property value||SDLT rate|
|Up to £125,000||Zero|
|The next £125,000 (the portion from £125,001 to £250,000)||2%|
|The next £675,000 (the portion from £250,001 to £925,000)||5%|
|The next £575,000 (the portion from £925,001 to £1.5 million)||10%|
|The remaining amount (the portion above £1.5 million)||12%|
For more information on Stamp Duty Land Tax or any other queries relating to buying and selling a property please contact a member of our specialist conveyancing team on [email protected] or telephone 01245 893400.
The Backhouse Team