Megan Baynes, cost of living reporter:
In September, the then-chancellor Kwasi Kwarteng announced a stamp duty cut for all home buyers as part of the mini-budget.
The new price thresholds, after which stamp duty must be paid, were:
- After the first 拢250,000 for people who have purchased property before (it was 拢125,000)
- After the first 拢425,000 for first-time buyers (it is currently 拢300,000)
- For first-time buyers of homes more than 拢425,000, they will be entitled to 5% relief from that price up to 拢625,000 (it is currently up to 拢500,000)
Although the mini-budget was, overall, pretty disastrous and most of the measures promptly reversed, the changes the stamp duty is one of the changes that will stay in place, amid predictions the housing market will slow over the next two years.
The cuts will remain until 31 March 2025. As first-time buyers, you can purchase a property costing up to 拢425,000 without paying stamp duty. If the home you are buying is more than that, you'll get 5% relief up to 拢625,000.
So, if you are purchasing a home worth - for example - 拢600,000, you will now pay 拢8,750 in stamp duty. Before the cut, you would have paid 拢17,500.
After March 2025, the chancellor said he will then "sunset the measure".
While this might seem like enough time before the cut ends, it takes a first time buyer an average of five years to save enough for a deposit 鈥� according to Rightmove 鈥� so we may see more people looking to friends and family to help save up their deposits, so they can purchase before the deadline.
Richard: