Stamp Duty Slashed!
Wed 28 Sep 2022
Stamp duty SLASHED to help get families on the housing ladder
Stamp duty was slashed today as the Government seeks to stimulate the housing market and help more families into their first homes.
The Chancellor raised the threshold at which stamp duty is paid from the first £125,000 of a property's value to £250,000, good news for people upsizing.
And there was even more good news for first-time buyers, who will not have to pay any stamp duty on properties bought for £425,000 or less, up from £300,000. They will also be able to claim relief on the first £625,000, up from £500,000.
Chancellor Kwasi Kwarteng told the Commons today that the move would 'support growth, increase confidence and help families aspiring to own their own home'.
'The steps we've taken today mean 200,000 more people will be taken out of paying stamp duty altogether. This is a permanent cut to stamp duty, effective from today,' he said.
Jamie Durham, economist at PwC, said: 'Reducing the cost of moving home is likely to both stimulate additional demand and allow people to pay more by freeing up cash for a deposit.
'After a hot housing market over the last couple of years, the decision to permanently cut stamp duty could push house prices up even further.
'This tax cut will make it easier for first-time buyers to get onto the property ladder, particularly in more expensive regions like London. This appears to be a positive change for first time buyers, and offers them more choice, as the nil-rate threshold has risen by more than average house price since the threshold was last adjusted.
'The decision to cut stamp duty, and stimulate demand, comes despite the market being primarily constrained by supply. While the Government is planning to release new land and reform the planning system, these are not likely to increase supply materially in the short term.
'However, this move does need to be considered in the context of the current inflationary environment. With the base rate reaching a 14-year high this week and the end of the Help to Buy equity scheme next year, the market was widely expected to cool over the coming months.