The impact on recovering housing market and the home buyers | AAG Wealth Management

The impact on recovering housing market and the home buyers

Posted: August 4, 2020

Chancellor Rishi Sunak set to raise the exemption threshold for the tax from £300,000 to £500,000 with immediate effect in his emergency summer Budget on Wednesday 8th July, in order to aid the economy and the housing market.

Buying a home worth up to £500,000 would usually incur stamp duty of up to £15,000 but this cost will be scrapped for six months under the new system.

In turn, stamp duty on a £750,000 house would fall from £24,286 to £9,286 — a saving of £15,000.

At the luxury end of the market, purchasers who spend £1 million on a property normally spend £27,500 in stamp duty. This will be slashed to £12,500, according to Savills, where analyst Lawrence Bowles said: “A stamp duty holiday would be a welcome boost to a market still in the early stages of recovery.

“Buyers are facing a tougher lending environment, with banks demanding higher deposits. Reducing the upfront cost of stamp duty would be a welcome help, especially to young Londoners struggling to save for their deposit, which is always the stumbling block.”

 

Source https://www.homesandproperty.co.uk/property-news/stamp-duty-holiday-rishi-sunak-housing-market-a139196.html

 


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