The Chancellor of the Exchequer has unveiled a robust new addition to the housing market – raising the threshold of Stamp Duty to £500,000. This is massive, massive news, the real estate market has been calling upon this to have been done for a long time, and it is a sensible level.
Not only does it mean that a huge majority of people will pay zero tax, those of you looking for a more expensive home than the £500,000 will also be significantly better off.
Stamp Duty has been a contentious issue for a while in residential circles. It is a very prohibitive additional fee to be paying in an already expensive process. There have been some changes implanted over the proceeding years including the removal of SDLT for first time buyers to a certain level. There have also been additional rates levied for second home owners or investors, and increased rates over a certain price point, which has contributed to a slowing market.
There is a vast proportion of wealth retained in bricks and mortar in the downszing market, and there should be more encouragement for this demographic to have some support in moving, and hopefully this will now help encourage some of these people to market. First time buyers are the life blood of the housing market, proceedable, mortgage agreed and ready to go, hopefully now they will all be SDLT free.
The building and housing industry is one of the cornerstones of our economy, let’s hope this gives us all a decent incentive to make the next move. With the possibility of a second lock down the question to ask is; could you improve your family’s life by taking the step now rather than waiting? It is still unprecedent times, but so are the measures that the government are undertaking.
Now more than ever a home is somewhere more than an investment – it is sheltering us, keeping us safe. Do your research, ensure you have undertaken strict budgeting for the upkeep and mortgage payments make sure you have a buffer too. Be decisive and prepared and remember to treat people as you would wish to be treated.
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