Chancellor Kwasi Kwarteng has cut Stamp Duty in his Mini Budget today.
The moves are designed to lower or remove Stamp Duty for many, particularly first time buyers.
On Stamp Duty for home buyers he:
• Doubled the stamp duty initial nil rate on property from £125,000 of a property’s value to £250,000
• First time buyers’ allowance has been increased from £300,000 to £425,000
• The value of the property on which first time buyers can claim relief is also increased from £500,000 to £625,000
Mr Kwarteng said the steps would mean 200,000 more people will be taken out of paying stamp duty. He added the cut was permanent and dates from today.
Mr Kwarteng said his new Investment Zones plan should also release land for new homes across the country.
He added that the changes to Stamp Duty should mean that a standard buyer in England will save £2,5000, meaning a typical family moving into a semi-detached property will save £2,500 on stamp duty and £1,150 on energy bills – and if they have a combined income of £50,000 around an additional £560 on tax.
The Chancellor also announced that he will speed up the disposal of surplus government land to build new homes, increasing supply.