First time buyers set to benefit from changes to stamp duty rates

Selling Property In Leeds

First time buyers set to benefit from changes to stamp duty rates

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November 30, 2015 11:14 am Published by
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New measures have been unveiled by George Osborne in the Autumn statement this week aimed at benefiting first time buyers and easing the step to get onto the property ladder.

The bold plans, due to come into effect from April 2016, were announced as part of a spending review package and are intended to boost home ownership and tackle the UK housing crisis by deterring investors from snatching up properties for buy-to-let purposes.

Landlords taking out buy-to-let mortgages and second home buyers in England and Wales will pay higher stamp duty rates with a 3% surcharge on each stamp duty band, while owner occupiers buying homes under £125,000 won’t pay any tax. It is expected that commercial property investors with over 15 properties will be exempt from the new regulation. We are likely to see a rush of buy-to-let landlords looking at properties before the planning increase in April.

In addition, the Help to Buy scheme in England, which has been so successful, will also be extended for an extra year to 2021, one year longer than planned. Under the popular scheme, prospective homeowners with a 5% deposit can purchase a new build property valued at up to £600,000 with the help of an interest free loan of up to 20% of the property’s price. In London, where property costs an average of £500,000, buyers will be able to access a loan of up to 40%.

The government plans to invest an extra £6.9bn into building new properties to meet housing needs. £2.3bn of this will be allocated to the government’s starter homes programme, £4bn will go to building 135,000 new homes for shared ownership and another £200m to build homes for rent.

To determine the stamp duty rate for a specific property value, use this stamp duty calculator or speak to one of our Sales Team who would be happy to advise you on what these changes mean for you.

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