So what’s going to happen to Stamp Duty in the March budget?
Rumour has it that Mr Javid was looking at introducing a wealth tax, nicknamed the “mansion tax” – which would be levied each year on expensive properties mainly located in the south.
Will the new Chancellor be on board which such a proposal?
If the new chancellor was to implement such a tax it is thought that some of the proceeds could be used to reduce stamp duty for everyday buyers.
Will Stamp Duty changes benefit you?
Boris Johnson’s government is apparently also considering an alternative to Help to Buy. The Government is expected to consult on the idea of offering a 30% discount, which will be assigned to specific houses and passed on when the homeowners sell up to locals.
First-time buyers may also benefit from plans to allow mortgage lenders to loosen affordability tests, put in place in the wake of the 2008 financial crisis. Encouraging longer term loans, which cut the cost of monthly mortgage repayments, though are more expensive overall, has also been hinted at.
A previous plan to overhaul the stamp duty system – raising the threshold for paying it from £125,000 to £500,000 at the same time as lowering the top rate from 12% to 7% – was dropped from the Tory manifesto, but could be resurrected by the new Chancellor.
We will have to wait and see!
Facts supplied by www.moneywise.co.uk
How Kerseys Can Help
If you require advice about Stamp Duty, buying or selling a property or conveyancing please call Sharon Livermore, Conveyancing Executive, part of our Residential Property Team.