A local Estate Agent has reacted to the news of major cuts to Stamp Duty Land Tax that were announced by Chancellor of the Exchequer Kwasi Kwarteng earlier today.
Setting out the first steps towards growth, Kwasi Kwarteng revealed a package of major cuts to Stamp Duty Land Tax, with the changes expected to increase additional residential investment, boost spending on household goods and support the hundreds of thousands of jobs in the property industry from removals companies to decorators. The nil rate band will be doubled from £125,000 to £250,000, meaning that 200,000 more people every year will be able to buy a home without paying any Stamp Duty at all. The standard buyer in England will save £2,500, meaning a typical family moving into a semi-detached property will save £2,500 on stamp duty and £1,150 on energy bills – and if they have a combined income of £50,000 around an additional £560 on tax. This is around £4,200 in total.
And the Government is going even further to support first time buyers, who will now pay no stamp duty up to £425,000, and increasing the value of the property on which first time buyers can claim relief, from £500,000 to £625,000. This tax cut took effect from midnight today (Friday 23 Sept 2022). The Chancellor also announced that he will further support homebuyers by increasing the disposal of surplus government land to build new homes, increasing supply.
The Chancellor of the Exchequer, Kwasi Kwarteng, said:
“Economic growth isn’t some academic term with no connection to the real world. It means more jobs, higher pay and more money to fund public services, like schools and the NHS.
“This will not happen overnight but the tax cuts and reforms I’ve announced today – the biggest package in generations – send a clear signal that growth is our priority.
“Cuts to stamp duty will get the housing market moving and support first-time buyers to put down roots. New Investment Zones will bring business investment and release land for new homes in communities across the country. And we’re accelerating new road, rail and energy projects by removing restrictions that have slowed down progress for too long.
“We want businesses to invest in the UK, we want the brightest and the best to work here and we want better living standards for everyone.”
We spoke to James Graham, the Herefordshire based founder of ODOS Properties and Partners an Estate Agency selling property across England about the recent announcement of the SDLT cuts and the property market.
“Stamp duty land tax also known as SDLT is a tax on property or land bought in England, the Government have announced that they are cutting stamp duty to ensure that the growth of the property market continues.
“On the face of it, cutting stamp duty is a good thing for people planning to buy houses, as it means they pay less tax on their purchase, making the home more affordable. However, if you delve into the facts and statistics of it, you could argue that this will push up house prices and therefor increase people’s mortgages. A study showed that the SDLT holiday announced by Rishi Sunak during the pandemic saw the average UK house price jump by 15.5%”
You can find out more details about the SDLT cut by visiting https://www.odosproperties.com/post/stamp-duty-land-tax-cut
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