Chancellor and Yorkshire MP Rishi Sunak lived up to expectations when he announced that he was raising the Stamp Duty threshold on residential property from £125,000, to £500,000 in England and Northern Ireland with immediate effect from today (July 8).
The increase will run until March 31 2021 and means that nine out of 10 homebuyers will pay no Stamp Duty, which costs buyers an average £4,500 per home. The chancellor hopes this will boost sales, prop up house prices and support house builders.
He said property transitions had dropped by 50 per cent and house prices had fallen for the first time in eight years while uncertainty abounded in the market. The reason for the Stamp Duty holiday for those buying a home for £500,000 or under was, he said, to provide a catalyst to boost confidence in the housing market. He added: “I want people feeling confident to buy, sell, move and improve as that will stimulate growth and create jobs.”
“I want people feeling confident to buy, sell, move and improve as that will stimulate growth and create jobs.”
The chancellor also announced a Green Homes Grant aimed at making properties more energy efficient and cheaper to run while cutting carbon emissions. The grants will be available from September this year as a voucher. They will fund two thirds of the cost of the work needed up to a maximum of £5,000. Low income households will be entitled to a £10,000 voucher.
He said: “We expect this to make 650,000 homes more energy efficient and this should save households an average of £300 per year in bills.”
Another motivation for introducing the grant scheme is to provide employment and the chancellor believes it will support 140,000 jobs.
Source: Yorkshire Post 7th July 2020