George Osborne announces stamp duty changes
The Chancellor of the Exchequer announced yesterday in his Autumn Statement a radical shake up of stamp duty land tax. The news has been welcomed by nearly all new homeowners, 98% of which will benefit from the new regime. Stamp duty has been seen as a very out of date tax that was unfair because in was introduced in 1998 when house prices were considerably lower than they are today.
Nearly every sale in the south-east of England has been subject to a minimum of 3% stamp duty on all property purchases. In most cases the stamp duty paid by first time buyers would have been a minimum of £7,500. under the new regime this will be cut. This is great news for first time buyers who will on average save in excess of £4,000.
Most people have welcomed the news as it will benefit around 98% of home buyers across the UK. Every sale that completes under £937,000 will benefit. For those that buy a home in excess of £937,000 the stamp duty will increase. Nearly everybody will be better off and the changes were also welcomed by the Labour Party. It is certainly a popular decision and is seen as a sweetener before the general election in 2015.
The Chancellor is certainly trying to curry favor with the electorate before the election in a bid to stay in power. Some property experts have warned of a mini housing boom but this has fallen on deaf ears as most homeowners will welcome further increases in the values of their homes.