Stamp duty. There’s no doubt that you’ve heard the phrase bouncing around since the announcement of the budget. For those not clued up, previously, stamp duty meant first-time buyers purchasing a property for more than £125,000 had to pay a hefty tax. However, in November the Chancellor officially announced the abolition of stamp duty for first-time buyers when purchasing properties of £300,000 or less. The best parts? An immediate effect and a potential £5000 discount.
How did the changes come about?
Calls for a ‘stamp duty holiday’ were echoing around the country when studies found that the tax was preventing 45,000 house purchases a year. With millennials stuck in the renting cycle, it seemed like a stamp duty holiday was the only way younger generations would be able to purchase property. However, the changes have gone beyond what was hoped. Rather than just a temporary fix, the tax is to be abolished permanently and immediately.
What do these changes mean?
Well, first-time buyers, you’re in luck. There’s never been a better time to purchase property given your exemption from the tax. The Treasury has said that raising the initial threshold to £300,000 now means that 80% of first-time buyers will pay no stamp duty. For those looking to purchase more luxury, higher value properties, the change to the tax is still positive. In the £300,000-£500,000 band, stamp duty will only be charged at 5%. Therefore, what would have been a £15,000 tax on a £500,000 property, is now only a £10,000 charge. The stamp duty exemption can be combined with other incentives for first-time buyers like Help To Buy ISA’s and Help To Buy on new build homes too. The immediate effect aspect means you don’t even have to wait around for this change to be put into action… buyers are already saving thousands of pounds on properties.
Where we come in
For first-time buyers, purchasing a house is a big deal. It needs to be a home you can see yourself staying in for the foreseeable future.
Shrewsbury is the perfect location for first-time buyers. With quiet suburbs and a bustling town centre that’s constantly expanding and developing, it’s a great place if you’re looking to settle down and finally purchase property. Buying new builds in the area is particularly advisable: putting this saved stamp duty tax money towards your mortgage, rather than using it to redecorate or even renovate your house, will be a weight off your shoulders.
Shrewsbury Homes knows that, as first-time buyers, you don’t want to just buy a house – you want to buy a home. That’s why we listen to your preferences and make your property personal so that you don’t have to worry about anything.
Are you a first-time buyer looking to purchase a home in the Shropshire area? Please contact Amanda Love on 07792 498927 or via email firstname.lastname@example.org for more information.