The Treasury has announced a one-year stamp duty suspension on properties costing less than £175,000.
The announcement came today from Chancellor Alistair Darling and is one of many Government measures to help the slumping property market.
The stamp duty holiday will be effective as of tomorrow, September 3rd, and will see the duty-free purchase amount rise from £125,000 to £175,000 for the following 12 months.
Estate agents and mortgage lenders have welcomed the announcement, with some stating that homebuyers have been reluctant to purchase in anticipation of reduced or relieved stamp duty charges.
The treasury estimates that some 500,000 homebuyers will benefit from the stamp duty holiday, costing the Government approximately £600m. As of tomorrow, homes costing more than £175,000 will be subject to one per cent stamp duty, and buyers will pay three per cent or four per cent on homes costing more than £250,000 and £500,000, respectively.
Further Government-funded measures to help first-time buyers of new properties include HomeBuy Direct, a scheme which will see five-year free-of-charge loans offered to households earning less than £60,000.
