The chancellor has announced a temporary holiday on stamp duty up to £500,000 as part of a number of measures to help stimulate the economy. We have listed below the key facts following this announcement.
Prior to the announcement In England and Northern Ireland stamp duty was paid on land or property sold for £125,000 or more. First-time buyers paid no tax up to £300,000 and 5% on any portion between £300,000 and £500,000.
For people who have bought a home before, stamp duty rates are 2% on £125,001-£250,000, 5% on £250,001-£925,000, 10% on £925,001-£1.5m, and 12% on any value above £1.5m. Following the decision no stamp duty will be paid on purchases up to £500,000
Prior to the chancellors decision someone purchasing a property at £495,000 would pay £14,750 in stamp duty, a first time buyer would pay £9750. Assuming completion takes place before the 31st of March 2021 the stamp duty is now zero.
People buying second homes and buy-to-let properties will also benefit, but will still have to pay the 3% extra duty due on the entire price.
The holiday applies from the 8th of July, which unfortunately means if you completed on your property purchase yesterday or before you will have to pay the full normal stamp duty.
For homes costing more than £500,000, buyers will pay 0 per cent on the first £500,000, five per cent on the remaining sold price of homes priced up to £925,000 and 10 per cent on homes up to £1.5 million. This increases to 12 per cent for homes costing more than £1.5 million.
With 81% of all residential stock for sale in England priced under £500,000 this could be a real boost the housing market, although with lenders still reluctant to release 90 and 95 percent products many first time buyers may not be able to take advantage of this offer. Fortunately there are some excellent schemes available to help buyers purchase their first home. Your friendly Mortgage Required Advisor will be happy to discuss these with you. Give us a call on 01628 507477 or click here to book a free appointment.
If you would like any details Contact Mortgage Required for an initial chat on 01628 507477 or click here to book a free call or video appointment.
Download our Free First Time Buyers Guide
Recent posts
Buying a house is a big deal, and where you are planning to buy will make a difference financially. In this short blog, we look at the most affordable and most expensive areas and how much you need to be earning to buy in there.
Pros and Cons of Equity Release
8 days ago
Equity release is a type of mortgage that allows homeowners 55 and over to access money from their property's equity without having to leave their home. This is done by securing a loan against the house which is usually repaid by selling the property when the borrower passes away or has to move into long-term care.
Your House Viewing Checklist
9 days ago
It’s important to ask questions about the property you are interested in before taking that step to make an offer. A little probing can make all the difference between buying your dream house or something that requires a lot of work.
Half of over 60s predicted to benefit from accessing housing wealth through Equity Release
12 days ago
There are millions of homeowners over the age of 60 who are likely to release money from their homes to pay for their lifestyle during retirement giving those who are 'asset rich but cash poor' a way to live out their retirement the way they wish.
Average Age of the First Time Buyer in the UK
19 days ago
The average age of a first-time buyer in the UK is two years older than 10 years ago. This is understandable with managing the cost-of-living and challenges within the economy such as high interest rates making it difficult to get onto the property ladder.
Delayed Start Mortgage from Skipton
21 days ago
Skipton Building Society launches ‘Delayed Start’ mortgage meaning first time buyers won’t be required to make repayments for the first three months.
According to a survey by Skipton, first time buyers who bought their home in the last five years found that in the first three months of living there, they were spending upwards of £30,000.
Gardening Tips for Beginners
26 days ago
If you have recently moved into a property with a garden that requires a little TLC, or you’d like to get on top of your current green space, check out our tips.
The Family-Backed Mortgage from NatWest
29 Apr 2025
High street lender, NatWest, have launched a new product to help first-time buyers purchase a property with assistance from a family member or friend to get them on the property ladder sooner.
More information
Trusted by
