Great news for Home buyers in the Dales.

Added on December 3rd, 2014 in The Hoppers Blog

Great news for Home buyers in the Dales.

Stamp Duty will be overhauled at midnight after today’s Autumn Statement by Chancellor George Osborne; he confirmed he would be reforming a “badly designed tax on aspiration”.

He has ditched the system by which home buyers paid Stamp Duty (SDLT) on the entire purchase price of the property in favour of a “progressive” structure which, he insisted, would benefit 98% of home purchasers. It will work more like Income Tax , where higher rates are only payable on the portions above certain thresholds.

Under the new reforms:

No SDLT  payable at all on properties up to £125,000 , and the first £125,000 on all  properties  be free of SDLT

Then SD LT is payable at 2% on the portion between £125,000 &  £250,000

SDLT is payable at 5% on the portion between £250,000 &  £925,000

Higher rates of  10% on the portion up to £1.5m , and then  payable at 12% on the portion over that amount.

J R Hoppers quick calculator works out the following rates payable

House Price         Old SDLT(£)         New SDLT (£)

£125000                             0                            0

£150000                             1500                     500

£200000                             2000                     1500

£250000                             2500                     2500

£300000                             9000                     5000

£400000                             12000                   10000

£500000                             15000                   15000

£600000                             24000                   20000

£750000                             30000                   27500

£1000000                           40000                   43750

This is great news for Dales Home buyers. First time buyers, will save hundreds of pounds when buying houses under £250,000Home buyers and sellers of houses just over the £250000 threshold will benefit from savings up to £5000. This will avoid house prices being artificially pushed down to the thresholds. Buyers of houses just over £500,000 will also save around £5000 on the transaction.

Calculations indicate that around the £1m mark the new rate becomes a heavier burden on home buyers but there will be savings for almost everyone buying in the £150,000 to £925,000 bracket.

A welcome boost to the winter housing market!!

We understand that any deals underway, ie exchanged  but not completed,  at present will have the option of choosing, but unless they are for £1million pound houses most will opt for the New deal.

Ho! Ho! Ho! to the chancellor.

Brian Carlisle

J R Hopper & Co

Dales Property Specialists.