Have you heard the news? I’m sure you have but I thought I would tell you about it anyway, as it’s some very welcome news for homemovers and property investors alike!
I would say that the majority of the investors that I deal with pay between £130,000 upto £250,000 for their investment properties. With the new Stamp Duty charges coming into play as of midnight 3rd December 2014, there are some big savings to be had that will impact the net yield made when investing in property.
To take a common example of a property purchase at £200,000, the previous amount payable was £2,000. The new stamp duty rate will be charged at £1,500, a saving of £500!
The following Stamp Duty charges will be as follows:
Up to £125,000: 0%
£125,001 – £250,000: 2%
£250,001 – £925,000 5%
£925,001 – £1.5m: 10%
Above £1.5m: 12%
I’ve put together a handy guide for the savings made at each purchase price level. Take a quick look to see how much you could save by clicking the picture below:
This move by George Osborne could really make a difference to the lower end of the market, obviously the higher end of the market (roughly £935,000 and above) will feel a huge pinch, but having a real saving for the majority of people (98%) in England and Wales is sure to get this market moving in the right direction for the next few years.