Stamp Duty Cut: What does it mean for first time buyers?

With the recent living crisis and increased cost of energy bills, many people are struggling to buy new. However, the recent stamp duty cut means first time home buyers are finally able to get one step closer to purchasing a property.

Chancellor Kwasi Kwarteng has confirmed a permanent stamp duty cut in the mini-Budget announced this morning in a bid to help first-time buyers.

The government has stated it is committed to helping first-time buyers get on the property ladder by increasing the level at which they start paying stamp duty from £300,000 to £425,000.

So, what is stamp duty? Stamp duty land tax (SDLT) is a lump sum payment you have to make when purchasing a property over a certain threshold. Before these changes, no stamp duty was paid on the first £125,000 of any property purchase but now the government has doubled that to £250,000 for all home purchases.

These measures will reduce stamp duty bills across the board for all movers by up to £2,500 with first time home buyers able to access up to £11,250 in relief. These changes come as the government explain that growth is its top priority and by making these vital changes will boost the property market and in turn, help businesses to expand and help fuel the wider economy’s growth.

Here at Rippon homes, we have a range of properties at all of our developments suitable for first-time buyers which are all under the new threshold for paying stamp duty. This incentive can also be paired with the Rippon Homes ‘Christmas all wrapped up’ offer where you can receive the following: either £1000 worth of Argos or Highstreet vouchers, £250 to spend at your supermarket of choice, £250 majestic wine vouchers, a £1000 ‘love2shop’ voucher and a £500 spa weekend voucher.

We hope that all of this will help buyers not only move home but have a Christmas to remember if they move in before 23rd of December here at Rippon Homes.