On Wednesday 8th July, the Chancellor announced that Stamp Duty will be slashed for properties up to the value £500,000. This policy is from immediate effect and will be in place until April 2021.
So, what does this Stamp Duty holiday announcement mean for London buyers?
Before the Government’s announcement, Stamp Duty policy already benefited first-time buyers, who were entitled to relief for the first £300,000 on properties up to a value of £500,000. For example, if you were a first-time buyer moving into one of our apartments priced at 357,500, you would pay stamp duty on the £57,000 equating to £2,875.00.
Not a first-time buyer? Before this announcement you’d have been paying £7,875.00 for an apartment priced at £357,000.
These costs have now been temporarily postponed. Stamp Duty won’t be due on any property valued up to £500,000 – whether you’re a first-time buyer or not. There will, however, be a Stamp Duty rate of 3% for those purchasing additional dwellings at this price point.
Of course, the higher the value the more you’ll be saving. If you’re a second-time buyer, looking at one of our apartments valued at £490,000, you will now save a whopping £14,500 if you complete before April.
This is clearly fantastic news for everyone – who doesn’t love to save money? But for second-time buyers this news is even more significant and timely.
Right now, second-time buyers are also taking advantage of Help to Buy before the existing scheme comes to end in April. After April 2021, Help To Buy will be for first time buyers only. So there really has never been a better time to buy!
Get in touch with our team to find out more about this news and the difference it could make to your property search.