Stamp of approval for reform
One of our directors has featured in an article in the Portsmouth News welcoming the long overdue overhaul of stamp duty.
Comments from Ian Lee were included in a feature from the Portsmouth Property Association (PPA) giving the sweeping reform the stamp of approval.
Ian, who is a former PPA chairman, pointed out that the shake-up will have positive knock on effects for the wider property industry.
Chancellor George Osborne made the shock move to slash the unpopular levy in his Autumn Statement to the House of Commons.
The sweeping reform will save buyers an average of £4,500 as long as their new home is worth less than £937,500.
The previous stamp duty system was based on amounts owed jumping at certain threshold levels.
This has been replaced by a graduated rate, with different amounts of duty due on the parts of a property’s value that fall into five new bands. They will no longer pay the same rate on the entire purchase.
Nothing will be paid on the first £125,000 of a property price and then 2% on the next portion of the property up to £250,000, 5% up to £925,000, 10% on the portion up to £1.5million and 12% on anything above that.
Under the new duty, buyers will save £1,000 on a £150,000 property and £500 on a £200,000 property.
On the UK average first time buyer price of £210,000 there will be a saving of £400, while at the average UK house price of £275,000 the saving will reach £4,500.
The saving stands at £4,900 on a property costing £510,000 and £1,000 on a £900,000 property.
A £2million property will carry an increase of £53,750 and a £5million property will have an increase of £163,750.
Visit the PPA website at www.portsmouthproperty.co.uk/articles/ppa-welcomes-shock-stamp-duty-overhaul-94.html for more details.
One of our directors has featured in an article in the Portsmouth News welcoming the long overdue overhaul of stamp…