Plans to change the Stamp Duty threshold to £500,000 to help cut costs for house buyers have been revealed.

Rishi Sunak has today unveiled his plans to change Stamp Duty to help cut costs for house buyers - raising the threshold at which the tax is charged to £500,000. Meaning you could save up to £15,000 when buying your dream new home - so don’t miss out!

What is Stamp Duty?

Stamp Duty is basically the tax paid by people buying property. The amount of Stamp Duty tax you pay depends on the price of your property and whether or not you are a first-time buyer. In England and Northern Ireland, Stamp Duty had previously been paid on land or property that is sold for £125,000 or more - although first-time buyers don’t pay Stamp Duty on land or property under £300,000, and only 5% from £300,000 to £500,000.

What is changing?

The government has raised the lower Stamp Duty threshold to £500,000, which means you don’t have to pay Stamp Duty on any land or property purchase under that amount. The ‘holiday’ offers a tax cut for first-time buyers looking for a property over £300,000 and other buyers going for anything over £125,000 (there are different rules for people buying second homes).

This will help buyers who have taken a financial hit during the COVID-19 lockdown and boost the housing market as we look to help the economy recover.

When will it happen?

Effective immediately, the changes will stay in place until March 31, 2021. With our property prices starting at £149,995, there is no better time to start looking for your first or new home - you can view our full property range here and our buying options, like ‘Help to Buy,’ here.