In Wednesday’s Budget, The Chancellor of Exchequer announced a major change to the current Stamp Duty Land Tax (SDLT) legislation for first time buyers.
The change (which was effective immediately) meant that first time buyers purchasing residential properties for up to £300,000 would be exempt from paying SDLT. In addition he announced that for those properties costing up to £500,000 the first £300,000 would also be exempt.
According to Rightmove the average house price in South East England is £389,862.
Using this figure, a first time buyer purchasing a property before Wednesday’s announcement would have paid £9,493 in SDLT.
Following from the Budget, that same purchaser would now pay £4,493 a saving of £5,000.
What impact the announcement will have on the housing market remains to be seen. However one important item to note is that the change in the legislation is only in place until the end of March 2018.
Please contact us if you would like legal advice about buying or selling your home.