The government will double the level at which people pay stamp duty from £125,000 to £250,000, with the changes coming into effect from today.
In today’s mini Budget today, Chancellor Kwasi Kwarteng added that the level at which first-time buyers start paying stamp duty will rise from £300,000 to £425,000.
The government will also allow first-time buyers to access relief, where they pay five per cent stamp duty when buying a property of less than £625,000, which is up from £500,000.
The changes will cut stamp duty bills for all movers by up to £2,500 and first-time buyers will be able to access up to £11,250 in relief, the government noted.
Doubling the level at which people pay stamp duty will mean 200,000 people will be able to purchase a home without paying stamp duty.
29,000 more people can move home
It added that around 29,000 more people will be able to move home each year, which the government said will boost household consumption, build confidence in the economy and support businesses relying on the property market.
In its fact sheet, the government said: “This policy is a tax cut for hard-working people and will allow them to keep more of the money they earn. This tax cut will boost household consumption, increase economic confidence and support jobs.”
The government’s decision to reform stamp duty was leaked earlier this week, with some critics saying that the tax break would push up house prices which would make it more challenging for first-time buyers to get on the property ladder.
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
