Exciting news for homebuyers!
The cost of buying a house is now cheaper. If you are looking to purchase a home, or even add to your property portfolio with a second home, there have been exciting new changes made as part of Chancellor Kwasi Kwarteng’s mini budget and our knowledgeable team are here to help you! There has been a cut in stamp duty, which is the tax paid when people buy a property in England and Northern Ireland and at Ackroyd Legal, we are specialists in offering guidance and support in simplifying the process for you, from start to finish.
Although average house prices vary from location to location, a first time buyer, purchasing an home for the average price in London for example, which is around £523,000 (via www.gov.uk), would save a whopping £11,250 with the new tax bands. It also opens a door of opportunity for those looking to get onto the property ladder and secure their future with bricks and mortar, after a difficult few years for the economy. New legislation makes that change more possible now than ever, as it means that additional first-time buyers might be able to afford a bigger home as their first move and doubles the previous tax threshold.
The government has announced a change to how the tax works, with the threshold which buyers have to pay duty rising from £125,000 to £250,000. The first £250,000 of the property’s value will be exempt.
The level at which first-time buyers pay stamp duty will rise from at £300,000 to £425,000 in a move to increase home ownership. This is applicable on properties valued up to £625,00 compared with the current £500,000. People in the process of buying a second property can also benefit from the tax break, with potential saving of £2,500.
Ackroyd Legal will hold your hand and help new buyers through the sometimes daunting process of purchasing your first home, finding a solicitor and securing the property of your dreams. You will be talking to a proactive, fully trained member of staff, even in the fast-paced, digital world, we live in. We keep online form filling to a minimum and customer care is part of our ethos.
At Ackroyd Legal, we offer expert legal advice and have a wealth of experience in the housing market, including leasehold, freehold, first-time buyers and new builds. Our qualified team of experts across the U.K. can advise you about how the new changes can benefit you and remove the stress of the lengthy paperwork and time consuming phone calls to different departments that sometimes come with buying a property, as we can do all of this within one dedicated firm.
The treasury estimates that doubling the nil-rate band could enable up to 29,000 more people to be able to move home each year and that 200,000 homebuyers will be exempt from paying the tax. The saving from the new stamp duty could benefit you by increasing your deposit for your new property or increasing the property band you wish to buy from.
Buying a property up to the value of £425,000 will now have no tax implications at all for a first time buyer.
The new exemption for moving home (not a first time buyer) has increased from £125,000 to £250,000 before any stamp duty is liable.
Any house purchase that has not reached completion as of the Friday 23rd Sept 2022 announcement, will benefit from these changes.
Different rates apply in Scotland and Wales under the Buildings Transaction Tax in Scotland and the Land Transaction Tax in Wales.
‘Home ownership is the most common route for people to own an asset, giving them a stake in the success of the economy and society,’ Chancellor Kwasi Kwarteng told the Commons.