Cut to stamp duty saves homebuyers thousands, says Loveitts/Auction House
The UK’s largest property auctioneer, Auction House – operating as Auction House Coventry and Warwickshire, estimates that last week’s cut in stamp duty will lift 200,000 homebuyers from paying the tax each year.
The move was announced by the Chancellor Kwasi Kwarteng in his September ‘mini-budget’ and could save property purchasers thousands of pounds each.
Director and Auctioneer, Sally Smith said: “This is great news for people moving home, because the price at which the zero stamp duty rate applies has been doubled from £125,000 to £250,000 – representing a potential saving of £2,500.
“It’s even better news for first time buyers, who previously did not pay any stamp duty on the first £300,000 of their home – but will now be free of the tax for the first £425,000 instead. What’s more, the value of property on which they can claim relief has been raised from £500,000 to £600,000 – which means they could save up to an astonishing £11,250.
“Even landlords, investors and second home buyers will benefit too. Whilst they will still have to pay an extra 3% stamp duty on top of the rates for each band, the doubling of the zero-rate to quarter of a million pounds will certainly help.
“So, not only do Auction House buyers have the advantage of the speed and certainty of the auction process – taking a matter of weeks instead of the average six months or so for a home being bought via private treaty – but now there’s yet another reason to purchase a property at one of our livestream events or online.
“As for our sellers of course, the knowledge that hundreds of thousands of buyers have been lifted out of paying stamp duty and incentivised to buy now, means they should enter their property into our next auction at The Village Hotel, Canley, Coventry CV4 9GZ on Thursday 3rd November at 6.30pm.”