How will the stamp duty changes affect your sale?
- 18th December 2014
- Selling Property News
The reforms could open up your property to a greater number of prospective buyers.
In this month’s Autumn Statement, the Government announced changes to the method used to calculate the amount of stamp duty a buyer is required to pay when purchasing a property.
Where previously a property which cost £251,000 was subject to 3% stamp duty on the total price, and a stamp duty bill of £7,530, the changes now mean that prospective buyers will only pay the proportion of the purchase price that's actually above the thresholds at the higher rate, and not the highest rate on the total amount. This would mean that a buyer would only pay £2,550 in stamp duty for a property bought at £251,000.
In the past, properties valued just below £250,000 proved popular amongst buyers because they attracted a lower rate of stamp duty and a significant cost saving for prospective buyers.
The changes now mean that those buyers that were previously priced out of some properties because of high stamp duty costs, will have a wider range of properties to choose from, while sellers are likely to have a bigger pool of prospective buyers.
Stephen Ludlow, Chairman of ludlowthompson, explains: “The new changes are set to give a boost to sellers of those properties which just fall into a higher stamp duty band, as well as the sales market as a whole.
“Where once a buyer may have been priced out of some properties by the added costs of stamp duty, the changes could mean that those properties that were previously just out of reach, could now be well within their grasp.
“The reforms could also encourage those who may have been delaying their purchase until after the election to bring their purchase forward, with the new rates set to increase the number of purchases in this usually quiet time for residential property deals."
The new changes are set to give a boost to sellers of properties falling just into a higher stamp duty band, as well as the sales market as a whole.
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