Stamp Duty cuts – ‘An attempt to boost economic growth.’

The property sector may have been handed a strategic lifeline by the government in the latest Mini Budget. In Friday’s announcement, the Chancellor Kwasi Kwarteng revealed a stamp duty cut for first time home buyers who purchase a property for under £250,000. Second-time buyers and investors will still have to pay the additional stamp duty surcharge of 3% on a property up to £250,000 and then 8% on the next £675,000 and so on. 

Briefly, Stamp Duty is a tax which is charged on the purchase price of a property and levelled at different rates above thresholds.  

These permanent changes came in into effect straight away, and arguably will be beneficial to most home buyers, in an attempt to keep the property industry not just moving, but more importantly, thriving. 

‘The changes should remove 200,000 people from having to pay stamp duty’, Chancellor Kwasi Kwarteng said. ‘This is a permanent cut in stamp duty, effective from today. 'According to the Chancellor, the low-tax approach of the Mini Budget announcement has been carefully designed to boost the economy.  

Paula Higgins CEO of Homeowners Alliance welcomes the announcement, ‘The government's changes in stamp duty mean more people will be able to afford to get on the property ladder.’ She said, ‘The government has also reaffirmed its commitment to homeownership. We agree it is critical: homeownership shouldn’t be for the richest in society, but achievable for everyone.’ She continues, ‘It means those who had put their move on hold earlier in the week when speculation of this cut began, can now crack on with their exchange and completion.’  (A source taken from Huffington Post online.) 

Overall evidence would suggest that the stamp duty cut has been positively received by most, as a welcome move to keep the housing market active amongst an economic crisis.