Homes Under the Hammer star and Property & Home’s Martin Roberts has praised the government’s decision to introduce Stamp Duty cuts.
Under the new plans revealed in Chancellor Kwasi Kwarteng’s ‘mini-budget’ on Friday, the threshold at which buyers must pay the duty has been elevated from £125,000 to £250,000. The threshold for first-time buyers has also increased from £300,000 to £425,000 in a bid to make it easier for first-time buyers to get on the property ladder. Additionally, first-time buyer tax relief will also be increased to properties worth up to £625,000 instead of the previous value of £500,000.
Reaction
Speaking on BBC News, property expert Martin Roberts said: “The property market is pretty hot, as you will be aware. Everything that happened during Covid and since has confounded even the most well-known experts.
“Nobody would have predicted this. I think a lot of people are fearful that this may just be another log on the fire that is property prices.
“I don’t think that. I think everyone hates stamp duty, and they have got rid of it, I mean they haven’t got rid of it completely but this helps first-time buyers.
“It’s more reflective of what’s happening in the property market in terms of the average price of property.
“First-time buyers get some help and people who were looking to move also get that help, but everyone hated stamp duty so if the Government can somehow do without the money from it, it’s fantastic.”
Savings
According to research conducted GetAgent.co.uk, the property market in England is set to witness the biggest saving when it comes to stamp duty cuts with 68% of the market experiencing a maximum saving of £2,500.
The estate agent comparison site analysed the current market to reveal just how many homebuyers are due to benefit from this maximum saving based on the current average house price in each area of England.
The research shows that currently, 32% of local authorities are home to an average house price below the new, initial SDLT threshold of £250,000 and, as a result, the average homebuyer in these areas will pay no stamp duty on their purchase.
For those who do still stand to pay stamp duty, the benefits of the latest cuts are still relatively extensive.
At a regional level, homebuyers in London, the South West, East of England, South East and the West Midlands all stand to save the maximum of £2,500 as a result of the latest stamp duty cuts.
GetAgent then analysed who stands to save what across each local authority in England.
The figures show that the average homebuyer across 68% of all local authorities stands to make the maximum stamp duty saving of £2,500 on their property purchase.
A further 15% of local authorities will see homebuyers save between £1,501 and £2,499, while this saving still sits as high as £501 to £1,500 across a further 13% of the market.
Colby Short, co-founder and CEO of GetAgent, said: “As the famous advertising slogan goes, every little helps, and while the maximum saving on offer to the average homebuyer may be fairly meagre in the grand scheme of property affordability, it’s a small saving that a vast majority are going to benefit from.
“Whether the latest cut means you’re paying no stamp duty at all, or your bill has reduced, it’s a saving that is sure to be welcomed by households who are currently struggling with the toughest financial landscape we’ve seen in some time.”
