What differences will first-time buyers in Surrey experience following changes to Stamp Duty?
In the Autumn Budget in November, the Chancellor Philip Hammond announced a stamp duty holiday for first time buyers. For those looking for a home in Surrey this could make a big difference to how much it costs to get that first step on the property ladder. It is widely acknowledged that stamp duty has presented a significant hurdle to first time buyers, as it’s one of the biggest additional expenses that many face. So, the step to provide a temporary holiday from the tax will be a welcome one to many who are ready to put down their first deposit.
Why has stamp duty been lifted?
The move is aimed at younger people who are trying to buy their first home. If you’re looking for property in Surrey and you are a first time buyer then you will benefit from the incoming change. Thanks to the lifting of stamp duty, buyers purchasing properties up to £300,000 will have no stamp duty to pay. There are also reduced rates for properties worth more than this, up to £500,000.
How much will buyers save?
If you’re planning to buy a home in Surrey then the change to stamp duty could be significant for you. Those intending to buy a property in Surrey worth up to £300,000 will now pay no stamp duty at all. The practical result of this is that you could save up to £5,000 on the costs of buying a home. Where properties are worth up to £500,000 the stamp duty bill would have been up to £15,000 but, as a result of the change announced in the budget, this will now drop to £10,000. As house prices differ from location to location, not everyone will access the same level of savings. The Chancellor has said that the saving to the average first time buyer is likely to be around £1,700.
Who benefits from the change?
Anyone looking to make a property purchase for the first time will feel the benefit of this tax shift. However, it could be particularly beneficial for first time buyers who have not yet been able to save for a deposit. Now, instead of putting that £5,000 to cover the cost of stamp duty, it can be added to whatever deposit the first time buyer has instead. It may not be as beneficial to anyone who already has a deposit but does not have a high enough income to qualify for specific mortgage as it will have no impact on earnings. However, lenders may be convinced to lend more where there is a bigger deposit so there are clear advantages for every type of first time buyer to the stamp duty change.
If you’re looking to take advantage of the change to stamp duty introduced in the budget to buy property in Surrey now is a great time to start investigating how it may impact on you. Whether you’re an interested buyer or a seller with questions about the changes that are coming Clarke Gammon Wellers can help.
Give our team a call today on the following area numbers: Guildford 01483 880900, Haslemere 01428 664800 or Liphook 01428 728900.