5 ways the new stamp duty rules could benefit you5 ways the new stamp duty rules could benefit you.
With Chancellor Rishi Sunak’s announcement that Stamp Duty Land Tax will be temporarily reduced for the first £500,000 of a sale value, does this just benefit buyers or will the benefits be further reaching?
- The obvious benefit will be for house hunters looking to buy a home to move into. If you’re buying under £500,000 there will be no stamp duty to pay whatsoever, irrelevant of whether you’re a first time buyer, second-stepper or downsizer. If you’re buying a home over £500,000 you will still save £15,000 off your stamp duty compared to the standard purchase brackets
- Sellers may well be able to achieve a higher selling price. If you’re considering selling your property, there may be an increased number of buyers looking at your property. This could lead to more competition amongst buyers which often drives the price up. As buyers are saving thousands of pounds in taxes, you may see them offering you that little bit extra to secure the purchase
- Buy to Let investors benefit too. Although Buy to Let buyers will still have to pay the 3% surcharge, the INITIAL portion of stamp duty will still be saved. A Buy to Let investment at £500,000 will incur you a stamp duty bill of £15,000 rather than the standard £30,000. A considerable saving which may see investors back to the table for the first time in 5 years.
- A boost for Ex Local authority properties. Traditional high-yield rental properties such as ex local authority properties may well see a similar boost like they did before the Buy to Let surcharge was introduced in 2016.
- Shorter marketing times. Typically in busier markets, properties spend less time on the market, removing the hassle of having to keep your property in immaculate condition for weeks on end.