The government has announced that the threshold for paying stamp duty is set to be increased to £500,000, as it tries to get the UK property market moving again.
This measure will come into effect straight away, but it is a temporary rather than permanent solution. Rishi Sunak, the Chancellor, has stated that the increased threshold will apply until the end of March next year. He also argued that it will mean savings of up to £4,000 for people buying a home between now and then.
Pushing the threshold up is also set to ensure that 9 out of 10 homebuyers will avoid stamp duty charges entirely. The previous property price threshold for paying this charge was £125,000, with 16% of all house sales in England being lower than that figure. By lifting it to £500,000, the number of sales that qualify for stamp duty exemption will rise to 89%.
Speaking to Financial Reporter, Kensington Mortgages CEO https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpg Arnold said that the recovery of the UK economy depended on the property market and added of these measures that:
“First-time buyers, second steppers and older homeowners will all benefit. Even before lockdown, there was a clear stagnation in housing activity on those higher up the property ladder.”
He concluded by saying that this will make it easier for people to get on that ladder.
The government commitment to stimulating the housing sector is encouraging. Mortgage advisors who have taken a CeMAP course will be mindful of these actions when finding clients the best possible deal.
