Welcome news for home buyers
The Chancellor’s announcement of earlier today is welcome news to home buyers and for the UK Housing Market in general.
In short, if you seeking to purchase a residential property from today until 31 March 2021, you will only start to pay stamp duty on the amount of the purchase price above £500,000. These rates changes apply whether you are a first time buyer, or have owned a residential property before. It is thought that this will save the average home buyer £4500.
What of buy to let investors?
The 3% higher rate for purchases of additional residential property will continue to be payable but on top of the new reduced rates until 31 March 2021.
On the 1 April 2021 the rates will return to the position prior to 8 July 2020.
A note a caution … the Government has yet to provide the full detail of these changes, so only general advice as to applicability can be given at this stage
One interesting point will be whether the date of levy will be the contract date, (which has been the historic position with previous stamp duty rate changes) or the date of completion
We will issue a further update, when more guidance becomes available