By David Williams, Director & Head of Property

In an attempt to boost the housing market following the lockdown, the government has raised the stamp duty (SDLT) threshold in England and Wales to £500,000.00 until March 31st 2021. This will result in significant savings for home buyers both above and below the £500.000.00 threshold.

The tiered system applied to stamp duty means buyers purchasing up to £500,000.00 will pay no stamp duty and those purchasing at a higher price will only pay at the normal rates on the value above £500.000.00. The new rates will be: –

The government predicts that the average stamp duty bill will fall by £4,500, but for properties priced at £500,000 the saving could be £15,000.

If you are buying a second home or buy to let property the 3% stamp duty surcharge will still apply. However, the surcharge will be against the new rates resulting in savings for properties over £125,000.00. Before the change, if you bought an investment property for £250,000, you would have paid 3% on the first £125,000 and 5% on the second £125,000, resulting in a stamp duty bill of £10,000. From today, you’ll only pay 3% stamp duty on the whole purchase price, meaning a bill of £7,500 and a saving of £2,500.

The rates for second properties and buy to let are below.

With the new rates for duty, and the extremely low interest rates being offered by lenders, it would seem there has seldom been a better time to purchase.

If you intend to make a move in the property market please contact David Williams in our Property Department on 01630 411222.