Blog: We’re all going on a Stamp Duty holiday
09 July 2020
Mark Cook, Group Sales & Marketing Director at Persimmon Homes, looks at how the mini-Budget will benefit house hunters.
There has never been a better time to buy a new-build property.
That’s our message to house hunters today after Chancellor Rishi Sunak announced Stamp Duty has been changed for most homes in England.
From today until March 31 2021, there is no longer Stamp Duty on houses up to the value of £500,000.
It’s a huge four-times leap from the previous £125,000 threshold before today’s announcement – and it’s a significant boost for people looking to purchase a new house. Thousands of people will save thousands of pounds in tax when they move house.
For example, Stamp Duty on a £250,000 house in England is usually £2,500. Today that figure is now zero.
The Government says that nine out of 10 people buying a home will benefit.
If you're selling your existing home and buying a new Persimmon home:
- House price £200,000 = £1,500 saving
- House price £300,000 = £5,000 saving
- House price £400,000 = £10,000 saving
- House price £500,000 = £15,000 saving *
Of course, even before today’s mini-Budget, if you were a first-time buyer you were already exempt from Stamp Duty on properties worth up to £300,000.
Furthermore, the Government’s Help to Buy: Equity Loan scheme can still be utilised in England. This means those who qualify may only need to find a five per cent cash deposit, with up to 20 per cent coming in a Government equity loan which is interest free for five years.
Be aware that from March 31 2021, the Help to Buy: Equity Loan scheme is changing.
We’re pleased that the Government has once again acknowledged the vital role house building plays in the economy as a whole. By taking this step, it will undoubtedly encourage more people to move house which, in turn, will see more money spent on carpets, curtains, furniture and so on.
One thing is certain – this holiday will not last forever. Our experienced sales advisers are ready to offer all the advice needed to get you moving, at sites from Newcastle to Falmouth.
Browse all of our sites here: https://www.persimmonhomes.com/find-your-new-home
* Additional Stamp Duty is due if any purchasers retain an existing residential property after acquiring a new Persimmon home. For full details please refer to an independent legal advisor.