Despite the reopening of the property market in May, some aspiring buyers are still holding back. In a bid to encourage people to get moving, in his Summer Economic Update of 8 July, Chancellor Rishi Sunak announced a ‘Stamp Duty holiday’ aimed at helping people feel “confident to buy, sell, renovate, move and improve.”
Until 31 March 2021, the usual Stamp Duty threshold of £125,000 has been increased to £500,000. This means that nine out of 10 buyers in England and Northern Ireland will pay no Stamp Duty on homes purchased before April next year, saving them an average of £4,500.
For purchases above £500,000, the rates are as follows:
• The next £425,000 (portion from £500,001 to £925,000) will be 5%
• The next £575,000 (the portion from £925,001 to £1.5 million) will be 10%
• The remaining amount (the portion above £1.5 million) will be 12%.
If you’d prefer to stay in your current home instead of moving, from September, homeowners will also be able to apply for a £2bn ‘Green Homes Grant’ scheme, which will offer households up to £5,000 to spend on making their home more energy efficient. It’s a package that, Mr Sunak said, could save households up to £300 a year on their bills, as well as creating and supporting 140,000 green jobs. Once launched, the government will pay two-thirds of energy-efficient home improvements up to £5,000.
More information on the grant can be found on the Government website: https://www.gov.uk/government/news/quality-assurance-at-heart-of-new-2-billion-green-homes-grants
Contact us in the office today to see how we can help and to arrange your no-obligation financial review.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.