Leek United Building Society has welcomed Chancellor Rishi Sunak’s decision to cut stamp duty until next March.
The temporary cut lifted the starting threshold for the tax to £500,000, meaning that any main residential property purchases in England and Northern Ireland below that price will not be subject to any stamp duty.
The move took effect immediately and will last until 31 March 2021 – saving those buying a property during that time an average of £4,500 per property.
Leek United's Director of Customer Services, Andy Armitage, welcomed the move, saying it would support both homeowners and property investors, and that it would provide a timely boost to a wide range of businesses by helping to stimulate the housing market.
He said: “A lot of businesses – particularly local ones – rely on the housing market either directly or indirectly, so a timely stimulus like this is welcome.
“But more importantly for buyers – whether homeowners or investors – it potentially delivers a cash saving that could help them for many years to come.
“By saving thousands of pounds in tax, it can be tempting for buyers to simply increase their budgets and look for a more expensive property.
“However, by using that money instead to increase the size of the deposit they put down on their next home, buyers could take advantage of more attractive interest rates that will lower their monthly repayments.”
Under the stamp duty holiday, any property that is purchased for less than £500,000 will have no stamp duty to pay.
Those priced between £500,001 and £925,000 will pay 5% duty on the portion between those prices, while properties between £925,001 and £1.5m will pay 10% on the portion between those thresholds. The rate above £1.5m is 12%.
First-time buyers were already exempt from paying stamp duty on purchases below £300,000 and paid 5% on the portion between £300,001 and £500,000.
The holiday applies to both those buying their main homes and to second-home buyers or landlords, although the additional homes surcharges – which is worth 3% on purchases below £500,000 - still applies.Back to news