Government relaxes Stamp Duty
Government announces Stamp Duty to be axed below £175,000 for the next twelve months.
From Wednesday 3rd September 2008 until the 2nd September 2009, homebuyers will not have to pay stamp duty on properties costing £175,000. The current £125,000 threshold will be raised in a move aimed at rejuvenating the housing market. This means that if you are buying a home for £175,000, you will save £1,750 under the new scheme. Home sellers will still need to provide a Home Information Pack.
It is believed that half of all property sales will now be free from from stamp duty. The threshold was previously on properties up to £125,000.
Other measures announced by Gordon Brown include help for first-time buyers and families facing repossession.
Chancellor Alistair Darling said he would reveal more details about the finances behind these schemes in his Autumn Pre-Budget Report including the possibility of increasing the availability of mortgage finance.
Other housing moves announced by the government include:
- Free 5-year loans of up to 30% of the property's value for 1st time buyers of new homes in England
- Extension of powers for housing associations and councils to be able to pay off debt for homeowners who can no longer afford mortgage payments and then charge rent.
- Shortening from 39 weeks to 13 weeks the period before Income Support for Mortgage Interest is paid
- Bringing forward spending from future years to encourage more social housing to be built
- Under the new loans system, called HomeBuy Direct, households in England earning less than £60,000 will be offered loans free of charge for five years on new properties, co-funded by the state and developers. When the five-year "free" period is up, the Department for Communities and Local Government has said that homebuyers will be asked to pay a fee but more details have not yet been made public.
3rd September 2008