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Rishi Sunak unveils stamp duty freeze on homes worth half-a-million pounds or less – as buyers delight at extra cash to spruce up their new properties thanks to savings of up to £15,000
Chancellor Rishi Sunak has scrapped stamp duty on most homes on Wednesday
The move is part of his mini-Budget designed to boost the growth and jobs
The axe could save buyers thousands
Home buyers’ have reacted with joy at Rishi Sunak‘s announcement in today’s mini-budget that he will freeze stamp duty.
The Chancellor said he would immediately raise the threshold on stamp duty to £500,000 until March 31 2021.
The measure, which temporarily increases the ‘nil rate’ band of stamp duty from £125,000 to £500,000, will reduce the average stamp duty bill for a main home from £4,500 to zero. Buyers can potentially save up to £15,000.
If you buy a property over £500,000 amount, then you can still save money and can take off £15,000 what you would have paid prior to the announcement.
Property experts said the step could encourage some ‘missing movers’ back to the market.
On the housing market, Mr Sunak said property transactions fell by 50 per cent in May and house prices have fallen for the first time in eight years.
He announced he has decided to cut stamp duty, telling the Commons: ‘Right now, there is no stamp duty on transactions below £125,000.
‘Today, I am increasing the threshold to £500,000. This will be a temporary cut running until March 31 2021 – and, as is always the case, these changes to stamp duty will take effect immediately.
‘The average stamp duty bill will fall by £4,500 for people planning on selling their homes and those planning on moving the property market is suddenly looking brighter. And nearly nine out of 10 people buying a main home this year, will pay no stamp duty at all.’
Buy-to let investors and people looking to purchase a second home will also benefit from the changes announced by the Chancellor today.
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