Chancellor Kwasi Kwarteng said stamp duty cuts, which apply to properties in England, would help get the housing market moving again and help first-time buyers. The measures, announced yesterday, on the back of the post-pandemic stamp duty holiday, have been put in place to assist buyers with affordability in light of rising interest rates and living costs. The new rates should help buyers put together a large enough deposit and secure mortgage lending.
What will this mean?
We have put together a breakdown below to help buyers navigate these changes and check what benefits they may have, if they have already exchanged or hope to buy in the future. The stamp duty rate is applicable from the completion date, not exchange, so these changes are effective as of 23rd September 2022.
The following stamp duty rates are applicable on residential purchases where first-time buyer relief is not granted and the property is not second ownership (standard rate).
| SDLT rate Up to £250,000 | Zero |
| The next £675,000 (the portion from £250,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
Already completed on your property purchase?
For completions that took place before 23rd September 2022, the changes will not be applicable to your transaction, meaning the stamp duty rates will remain as below for standard rate transactions.
| SDLT up to £125,000 | Zero |
| The next £125,000 (the portion from £125,001 to £250,000) | 2% |
| The next £675,000 (the portion from £250,001 to £925,000 | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
First time buyer?
First time buyers are also being given additional relief as below to help with affordability as below:
| no SDLT up to | £425,000 |
| 5% SDLT on the portion from | £425,001 to £625,000 |
But for first time buyers before 23rd September 2022:
| Up to £300,000 | Zero |
| The next £200,000 (the portion from £300,001 to £500,000) | 5% |
Second homeowner?
For second homeowners the 3% surcharge on additional properties still applies to the standard rate which has not changed in following the announcement. The main residence exemption remains the same as well.
Buying a home involves a lot of, sometimes complex, considerations. If you need assistance with a residential property transaction, please do contact us and we would be delighted to assist with your legal requirements.