If you want to make a move in the housing market, it makes sense to stay up to date with the latest changes. Recent stamp duty changes will mean some potential buyers will look at the market differently, which impacts buyers and vendors.
If you want to be informed about how these changes impact you, we can help.
What is Stamp Duty?
Stamp duty is a tax that is levied on the purchase of property in the United Kingdom. The tax is calculated as a percentage of the purchase price of the property, and is payable by the buyer.
Why is stamp duty important?
Stamp duty is an important source of revenue for the government, and helps to fund public services such as education and healthcare. The tax also helps to cool the housing market by making it more expensive to buy property, which can help to prevent house prices from rising too rapidly.
How much stamp duty do I have to pay?
The amount of stamp duty you have to pay depends on the purchase price of the property and your personal circumstances.
When do I have to pay stamp duty?
You will need to pay stamp duty within 14 days of completing the purchase of your property. Failure to do so may result in penalties or interest being charged.
What happens if I don’t pay stamp duty?
If you fail to pay stamp duty, you may be liable for penalties or interest charges. Additionally, the government may take legal action against you in order to recover the outstanding tax.
What are the stamp duty rates now?
Stamp duty tax bands from 23 Sept 2022
- Up to £250,000 – 0%
- £250,001 to £925,000 – 5%
- £925,001 to £1.5 million – 10%
- Over £1.5 million 12%
- Up to £425,000 – 0%
- £425,001 to £625,000 – 5%
- Homes priced above £625,000 – Normal rates apply
Tim Bannister from Rightmove believes stamp duty changes will stimulate demand in the market. Tim said; “If the stamp duty cuts lead to a big jump in prospective buyers competing for the constrained number of properties for sale, then it could lead to some unseasonal price rises over the next few months. But because the change is permanent, and because of gathering headwinds such as rising mortgage rates, we expect to see a more gradual increase in demand compared with the surge when the temporary stamp duty holiday was announced in 2020. With more buyer demand we would also expect that the current trend of more properties coming to market will continue, offering more choice for buyers.”
Contact Williams of Petersfield for all your 2022 housing market needs
At Williams of Petersfield, we aim to support the Petersfield community as much as we can, and we know this is an extremely trying time. A lot of people are looking for support and guidance, and if you have any property or housing related questions, we are more than happy to assist you, so contact us today.