Last week’s Budget from Rachel ‘Robber’ Reeves could have a damning impact on UK homebuyers, Propertymark has warned.
The agent trade body reckons many first-time buyers and homeowners who are looking to move from 1 April next year could be in for a shock.
Based on the average UK house price of £293,000, those looking to move house could find their Stamp Duty bill more than double from £2,150 to £4,650.
The Stamp Duty threshold for first-time buyers has also been reduced from £425,0000 to £300,000, which will give thousands of first-time buyers an additional tax liability, which has the potential to affect affordably across some regions.
WORST OFF
First-time buyers in London hoping to purchase an average priced house at £531,212 are set to be worst affected, having to find an additional £11,250 when the changes take effect.
Based on average house prices per region, those looking to move house will see a typical increase of around £2,500 across many areas.
First-time buyers will be exempt up to an initial threshold of £300,000 (if the price of the property they are purchasing is below £500,000).
BUYER BEWARE
Nathan Emerson, Chief Executive at Propertymark, says: “The Autumn Budget will likely uplift the housing market over the coming months, as people potentially look to complete before any increases on stamp duty come into effect next April.
“It is however important to consider continued house price growth, even in the short to medium term, as overall pricing gains should outweigh any proposed stamp duty increases for the very highest percentage of buyers.”
